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Chapter 9

Example 1

The following is an extract from the cash book of ABX for the month of June:
$ $
Balance b/d 9,167 Purchase ledger 1,392
Sales ledger 4,023 Rent payable 2,613
Cash sales 2,194 Interest payable 981
Sales ledger 7,249 Cheques cashed 3,290
Balance c/d 14,357
——— ———
22,633 22,633
——— ———

ABX's bank statement for the same period was as follows:
Debit $ Credit $ Balance $
Opening balance 7,645
Lodgement 000212 2,491 10,136
Cheque 000148 969 9,167
Insurance D/D 2,413 6,754
Lodgement 000213 4,023 10,777
Cheque 000149 1,392 9,385
Cheque 000150 2,613 6,772
Cheque 000152 3,290 3,482
Lodgement 000214 2,194 5,676
Bank charges 563 5,113
Required:

You are required to reconcile the balances in the cash book and the bank
statement at the end of the month.

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