The following information relates to a merchandising business, Greater Tomorrow Pty Ltd.

1. While Cash at Bank account balance as at 31 July 2019 showed a debit balance of $15,000, a bank statement from the bank showed a credit balance of $16,800.

2. Receipts amounting to $422 deposited on 31 July has not been recorded by the bank.

3. EFT, a payment to accounts payable, was correctly written and paid by the bank for $808. The amount was recorded in the cash payment journal as $880.

4. Outstanding EFTs at 31 July totalled $1,965.

5. On 31 July the bank statement showed a reversal entry of $380 that had been originally deposited by Mr. Delay, a customer, to Greater Tomorrow Pty Ltd.

6. The statement included a debit entry of $60 for the annual bank service fee.

7. A $625 deposit made by Greater Always was incorrectly credited to the bank account of Greater Tomorrow Pty Ltd.

Required

a) Prepare a bank reconciliation as at 31 July 2019 based on the provided information.

b) Prepare journal to record the necessary adjusting entries as at 31 July 2019. 

Answer rating: 100% (QA)

Answer a Bank Reconciliation as at 31 July 2019 Greater Tomorrow Pty Ltd ... View the full answer