3 years ago   Accountancy

 Christina balanced her cash boon 31 October 20-4 and brought down a debit balance of $32800n November. Her bank statement for October 20-4 showed a closing credit balance of $208. When comparing the cash book with the bank statement, Cristina found the following:  I . These items appeared only in the cash book:  Cheque, $280, paid to Wilma, a creditor cash sales $1643 ii. These items appeared only in the bank statement:  Bank charges of $109  Insurance, $850, paid by standing order  iii, The bank had debited Christina's business bank account with a standing order for $750, for a life insurance policy premium which should have been paid from Christina's personal bank account.  REQUIRED:  a.Make additional entries required in Christina's cash book, calculate a new bank balance at 31 October 20-4. Bring down the balance on I November 20-4 [10 marks]  b. Prepare a bank reconciliation statement at 31 October 20-4 [10 marks]  c.State the bank balance that should be shown in Christina's statement of financial position on 31 October 204 and state whether it is an asset or a liability.

Deependra Giri

3 years ago

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