Question: Task3: This task has been designed to assess your understanding and ability to perform, prepare & appraise bank reconciliation. Use the given information in order

 Task3: This task has been designed to assess your understanding and

Task3: This task has been designed to assess your understanding and ability to perform, prepare \& appraise bank reconciliation. Use the given information in order to Verify and reconcile business records with bank's records by performing bank reconciliations. You have two different clients are facing regular monthly problems with matching the cash balance of the bank statement with the cash balance found on their business's records. Your task is to help these clients to handle and solve this issue by performing bank reconciliations for these two businesses (Gamma \& Delta) by using the available information in table 4&5.then appraise the bank reconciliation process identifying errors and omissions from bank statement and cash book. Table 4: Business (Gamma) Available information for bank reconciliation Table 5: Business (Delta) Available information for bank reconciliation \begin{tabular}{|l|l|} \hline 1 & Delta's bank statement dated December 31,2022 shows a cash balance of 45,000 \\ \hline 2 & The business's ledger shows a balance of 30,000 on the same date, \\ \hline 3 & Followingchecksissuedbythebusinesstoitssuppliersarestilloutstanding:No.500issuedonDecember27:1,800No.501issuedonDecember28:2,000.No.502issuedonDecember29:1,500.No.503issuedonDecember29:2,500. \\ \hline 4 & Anamountof5,000senttothebankfordepositonDecember31doesnotappearinthebankstatement. \\ \hline 5 & Anotereceivableamountingto15,000hasbeencollectedbybankforthebusiness.Thebankhascharged1000forthecollectionofnote. \\ \hline 6 & Thebankstatementshowsthatinterestamountingto1,200hasbeeneamedonaverageaccountbalanceduringDecember. \\ \hline 7 & A bounced check of 2,500 deposited by the business has been charged back as NSF. \\ \hline 8 & An amount of 100 has been deducted by bank as service charges for the month of December. \\ \hline 9 & A deposit of 600 was incorrectly entered as 700 in the business's cash records \\ \hline \end{tabular}

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!