Financial Accounting: Reconciliation of Bank and Cash Book Balances

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Financial accounting
1

Table of Contents
Task 1...............................................................................................................................................4
1.1.................................................................................................................................................4
1.2.................................................................................................................................................5
i)................................................................................................................................................5
ii)............................................................................................................................................10
2.1...............................................................................................................................................11
2.2...............................................................................................................................................12
2.3...............................................................................................................................................13
2.4...............................................................................................................................................14
Task 3.............................................................................................................................................15
3.1...............................................................................................................................................15
3.2...............................................................................................................................................16
3.3...............................................................................................................................................17
3.4...............................................................................................................................................18
Task 4.............................................................................................................................................19
4.1...............................................................................................................................................19
4.2...............................................................................................................................................19
4.3...............................................................................................................................................19
4.4...............................................................................................................................................21
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References......................................................................................................................................25
3

Task 1
1.1
Trial Balance as at 31 Dec
2018
Particulars Amount(Dr.)
Amount(Cr.
)
van 51,250
Premises 340,000
fixtures 8100
inventory 63900
accounts receivables
P Mullen 1400
F Lane 3100
cash at bank 62400
cash in hand 5600
4

accounts payables
S. Hood 2150
J. Brown 4600
capital (balancing
figure) 529000
Total 535,750 535750
5

1.2
i)
Journal entries
Date Particulars L.f.
Amount(DR.
)
Amount
(Cr.)
January
2019 Storage cost a/c Dr. 400
To bank 400
(Being expense paid in cheque)
Purchases a/c Dr. 6080
To S. Hood 1450
To D. Main 2060
To W.Tone 960
To R. Foot 1610
6

(Being goods purchased on
credit)
J Wilson a/c Dr. 1120
T. Cole a/c Dr. 1640
F. Syme a/c Dr. 2080
J. Allen a/c Dr. 910
P. White a/c Dr. 2420
F. Lane a/c Dr. 770
To sales 8940
(Being goods sold on credit)
motor expenses a/c Dr. 470
To cash 470
(Paid motor expenses in cash)
7

Drawings a/c Dr. 1500
To cash a/c 1500
(being cash drawings made)
T. Cole a/c Dr. 680
J. Fox a/c Dr. 1310
To sales 1990
(Being goods sold on credit)
sales return a/c Dr 680
to J. Wilson 270
To F. Syme 410
(Being sales return recorded)
8

Van a/c Dr. 28500
To Abel Motors 28500
(Being van purchased)
Bank a/c Dr. 6668
Discount allowed a/c Dr. 352
To P. Mullen 1400
To F. Lane 3100
To J. Wilson 850
To F. Syme 1670
(Being amount received from
debtors)
R. foot a/c Dr. 50
9

To Purchase return 50
(Being purchases return
recorded)
Purchases a/c Dr. 3740
To L. Mole 1830
To W. Wright 1910
(Being goods purchased on
credit)
S. Hood a/c Dr. 3600
J. Brown a/c Dr. 4600
R. Foot a/c Dr. 1400
To discount received 96
10

To bank a/c 9504
(Being creditors paid)
salaries 4800
To bank 4800
(Being salaries paid through
bank)
Business rates 1320
To bank 1320
(Being business rates paid)
Abel Motors Ltd 20500
To bank 20500
(Being Abel motors paid in
11

cheque)
ledger
Cash a/c
Date Particulars Amount
Dat
e Particulars
Amou
nt
1/1/20
19 To opening balance 5600
By motor expenses
a/c . 470
By Drawings a/c 1500
By balance b/d 3630
total 5600 total 5600
Bank a/c
Date Particulars Amount
Dat
e Particulars
Amou
nt
1/1/20
19 To opening balance 62400 By storage cost 400
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