Camilla Decorations _Bank-Reconciliation-Financial-Statements

Exercise 1: Bank Reconciliation

Camilla Decorations received its bank statement for the month of March 2013. It showed a credit balance of $6,396.70.  The Cash at Bank account on 31 March 2013 had a debit balance of $6,110.70.  The following reconciling items were identified.

1.          Un-presented cheques amounted to $3,070.

2.          The bank statement included a $25 debit for bank service charges for the month.

3.          Cash taking of $2,003 for 31 March was placed in the bank’s night safe on that day but was not credited by bank until 1 April 2013.

4.          The bank had debited a sum of $810 for a returned cheque originally received from a credit customer, Daniel Anderson in payment of his account for $900.

5.          Cheque number 8015 for $128 for sundry stationery items purchased had been incorrectly recorded in the cash book as $182.

Required:

a.        Prepare a bank reconciliation statement at 31 March 2013.                     

b.        Prepare journal entries (in general journal format) to bring the business’ records up to date.