Preparation of Bank Reconciliation - SS1 Accounting Lesson Note
The following transactions for Flora's company for the month of April 2022 are presented. You are required to prepare:
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A bank statements
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A balance reconciliation statement (including uncredited cheques, unpresented cheques, and bank errors)
Bank Transactions for Flora's Company for the Month of April 2022:
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On April 1, 2022, Flora's company deposited ₦100000 in the bank.
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On April 3, 2022, Flora's company issued a cheque of ₦50000 to a vendor.
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On April 5, 2022, Flora's company received a cheque of ₦20000 from a customer, but the cheque was not credited to the account until April 10.
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On April 7, 2022, Flora's company withdrew ₦30000 from the bank for office expenses.
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On April 9, 2022, Flora's company deposited ₦80000 in the bank.
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On April 11, 2022, Flora's company issued a cheque of ₦10000 to a supplier, but the cheque was not presented until April 15.
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On April 13, 2022, Flora's company received a cheque of ₦15000 from a customer, but the cheque was dishonoured due to insufficient funds.
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On April 20, 2022, the bank made an error and debited Flora's company account by ₦5000 instead of ₦500.
Bank Statement for Flora's Company
For the Month of April 2022
|
Date |
Particulars |
Deposits (₦) |
Withdrawals (₦) |
Balance (₦) |
|
Mar 31, 2022 |
Starting Balance |
50000 |
||
|
Apr 1, 2022 |
Deposit |
10,000 |
150000 |
|
|
Apr 3, 2022 |
Cheque Payment to Vendor |
50000 |
100000 |
|
|
Apr 7, 2022 |
Withdrawal for Expenses |
30000 |
70000 |
|
|
Apr 9, 2022 |
Deposit |
80000 |
150000 |
|
|
Apr 13, 2022 |
Dishonoured Cheque |
135000 |
||
|
Apr 15, 2022 |
Cheque Payment to Supplier |
10000 |
125000 |
|
|
Apr 20, 2022 |
Bank Error |
5000 |
120000 |
|
|
Apr 30, 2022 |
End-of-Month Balance |
120000 |
Bank Reconciliation Statement for Flora's Company
For the Month of April 2022
|
Particulars |
Amount (₦) |
|
Balance as per Bank Statement Add: Uncredited Cheque Less: Unpresented Cheque Less: Bank Error Adjusted Bank Balance Less: Book Balance Adjusted Book Balance |
120000 20000 120000 10000 4500 125500 135000 9500 |