– Bank reconciliation
You are preparing Golf Club’s financial reports for June 2017, and the 30 June 2017 bank statement has just arrived with the balance of $29,930. Currently, Golf Club’s Cash account shows a balance of $30,690.
Additional information:
| EFT dividend receipt | $ 1,050 |
| EFT Rates payment | $ 2,520 |
| Bank collection | $ 12,502 |
| Dishonoured cheque | $ 1,920 |
| Bank service charge | $ 250 |
| Deposit in transit | $ 12,030 |
| Wrong deduction from the bank | $ 520 |
| Interest revenue earned | $ 122 |
| Outstanding cheques | |
| Cheque no. 256 | $ 2,030 |
| Cheque no. 257 | $ 520 |
| Cheque no. 258 | $ 256 |
Requirements:
- Suggest one item that can decrease the bank balance, and one item that can decrease the cash balance. The value for both items must be the same. (4 marks)
- With the new balances, prepare Golf Club’s Bank Reconciliation at 30 June 2017 from the above data. Provide your handwritten solution – scan or use your phone to copy and paste the image in your assignment. You can use a free scanning app such as Camscanner, OfficeLens, or Google Drive. (8 marks)
- Record any required journal entries from the bank reconciliation. (8 marks)
