Question: dont have time please help me Mr. Johnson, a businessman, is concerned that his cash book balance and his bank statement balance are different. His

dont have time please help me
 dont have time please help me Mr. Johnson, a businessman, is

Mr. Johnson, a businessman, is concerned that his cash book balance and his bank statement balance are different. His cash book and bank statement are shown below. You are informed by the bank that all entries on their statement are correct. Dr. Cash Book Date Details Date Details 01-Jan Balance 4,000 02-Jan Cheque 23 4.400 04-Jan Lodgement 1 1,000 03-Jan Cheque 24 2,500 07-Jan Lodgement 2 2,680 06-Jan Cheque 25 340 12-Jan Lodgement 3 4.800 13-Jan Cheque 26 2,000 18-Jan Lodgement 4 6.500 15-Jan Cheque 27 4.200 26-Jan Lodgements 1,340 30-Jan Cheque 28 1,500 31-Jan Balance cd 5.380 20,320 01-Feb Balance 5,380 20.320 On the 31 January Mr. Johnson's banks statement showed the following details: Date Details Debit () Credit ( Balance (E) 01-Jan Balance 4,000 03-Jan Cheque 24 2.500 1.500 04-Jan Lodgement 1.000 2,500 07-Jan Cheque 25 340 2.160 08-Jan Lodgement 2.680 4840 10-Jan Standing Order 560 4280 12-Jan Cheque 26 2,000 2.280 15-Jan Bank charges 120 2160 21-Jan Lodgement 4,800 6,960 23-Jan Bank interest 100 6,860 25-Jan Lodgement 6,500 13.360 31-Jan Cheque 28 1,500 11,860 Required: a) Explain clearly why the balance on a bank statement may not agree with the bank balance from her own accountancy system. (10 Marks) b) Update Mr. Johnson's cash book as necessary. (30 Marks) c) Prepare a Bank Reconciliation Statement as at 31" January. (30 Marks) d) Write notes on any THREE of the following accounting concepts. (30 Marks) i. The going concern concept ii. The business entity concept The accruals concept iv. The historic cost concept

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!