Page 382 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 20

Example 1: Solution (cont.)

Step 2: There are some items on the bank statement that have not yet been
entered in the cash book. The cash book balance needs to be
updated and amended for these items:
$ $
Balance as shown in cash book 14,357
Less:
Insurance 2,413
Bank charges 563
———
(2,976)

———
Amended cash book balance 11,381
———

Example 1: Solution (cont.)

Step 3: The remaining differences between the amended cash book balance
and the bank statement balance are caused by timing differences on
those items not matched above:
$
Balance as per bank statement 5,113

Add: Uncleared lodgement 7,249
———
12,362
Less: Unpresented cheque (981)
———
Balance as per cash book 11,381
———

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