Kipling plc deposits all receipts and makes all payments by check. The following information is available from the cash records.
June 30 Bank Reconciliation
Balance per bank.............................................................£7,000
Add: Deposits in transit......................................................1,540
Deduct: Outstanding checks.................................................2,000
Balance per books............................................................£6,540

Instructions
a. Prepare a bank reconciliation going from balance per bank and balance per book to correct the cash balance.
b. Prepare the general journal entry or entries to correct the Cash account.

Transcribed Image Text:

Month of July Results Per Bank Per Books Balance July 31 £9,250 5,810 3,100 £8,650 4,500 4,000 July deposits July checks July note collected (not included in July deposits) 1,500 July bank service charge July NSF check from a customer, returned by the bank (recorded by bank as a charge) 15 335