Page 185 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Accounting reconciliations

Example 1: Solution

Step 1: Compare the entries shown in the cash book with those on the bank
statement and match them. This is shown below where letters have
been used to match the items together.
$ $
Balance b/d 9,167 Purchase ledger (c) 1,392
Sales ledger (a) 4,023 Rent payable (d) 2,613
Cash sales (b) 2,194 Interest payable 981
Sales ledger 7,249 Cheques cashed (e) 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 (a) 10,777
Cheque 000149 1,392 (c) 9,385
Cheque 000150 2,613 (d) 6,772
Cheque 000152 3,290 (e) 3,482
Lodgement 000214 2,194 (b) 5,676
Bank charges 563 5,113

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