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
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.
On April 3, 2022, Flora's company issued a cheque of ₦50000 to a vendor.
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.
On April 7, 2022, Flora's company withdrew ₦30000 from the bank for office expenses.
On April 9, 2022, Flora's company deposited ₦80000 in the bank.
On April 11, 2022, Flora's company issued a cheque of ₦10000 to a supplier, but the cheque was not presented until April 15.
On April 13, 2022, Flora's company received a cheque of ₦15000 from a customer, but the cheque was dishonoured due to insufficient funds.
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