Bank Reconciliation Statement Solved Example 2
Bank Reconciliation Statement Solved Example 2
Bank Reconciliation Statement Solved Example 2
Rocky’s Cash Book (Bank Column only) for the month of June 2008 was as follows:
You may assume that the bank balance was successfully reconciled at the end of March.
a) Bring the Cash Book up to date, starting with the balance at 30 June 2008.
b) Prepare a Statement, under its correct title, to reconcile the difference between your
amended Cash Book balance and the balance in the Bank Statement on 30 June 2008.
c) State the amount of the up-dated bank balance.
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Solution
(a)Cash Book
2008 ($) ($)
June Dividend 90 June Balance b/f 450
30 30
Balance c/f (adjusted) 505 Bankers’ Order 85
Dishonoured Cheque 60
595 595
(c) The amount of the up-dated balance is $505 (credit balance as per Cash Book)
Hint 1
This is a credit balance i.e. an overdraft
Hint 2
This entry has already appeared in Cash Book in May. Note the date 31 May. Note also the difference
between opening balance in Cash Book ($600) and opening balance in Bank Statement ($520) is $80.
So no adjustments in June.
Hint 3
This is a credit balance. A credit balance in Bank Statement is equivalent to a debit balance in Cash
Book.
Hint 4
Updated means, after all necessary adjustments have been made.
©dineshbakshi.com
This worksheet has been downloaded from www.dineshbakshi.com. Home to IGCSE Business Studies, Economics ,Accounting & ICT revision.
Loaded with interactive quizzes, business news, study notes, case studies and lot of goodies for teachers and students.