On comparing the month-end bank account overdraft of R3 460 with the bank statement, the bookkeeper of
On comparing the month-end bank account overdraft of R3 460 with the bank statement, the bookkeeper of Clan Enterprises noted that:
1 Cheques totalling R2 876 have not yet been presented to the bank for payment.
2 A deposit of R2 584 entered in the cash receipts journal has not yet been credited by the bank.
3 A credit transfer of R4 500 from a customer had not been entered in the cash receipts journal.
4 A cheque for R169 deposited on the last day of the month was returned by the bank marked ‘R/D’. (Clan’s records have not yet been adjusted.)
5 These charges shown on the bank statement have not yet been entered in Clan’s records:
You are required to:
1. Calculate the adjusted month-end bank account balance.
2. Calculate the closing balance as shown on the bank statement.
Step by Step Answer: