Question# 1

The cash book of J.Jones showed a balance at the bank of $570 in hand on 31 January
19X1. At the same date, the bank statement balance of J.Jones’ account was $446 overdrawn.
The difference was accounted for as follows:
1) Cheques for $1 555 sent to creditors on 30 January were not paid by the bank until 8
February.
2) Cheques amounting to $2 520 paid into the bank on 31 January were not credited by
the bank until 1 February.
3) A standing order for a charitable subscription of $60 had been paid by the bank on 21
January but no entry had been made in the cash book.
4) A cheque paid by J.Jones for rent on 15 January for $345 had been entered in his cash
book as $354.
Prepare the bank reconciliation statement.

Question# 2
Kay Rogan’s Cash Book at 30th November 1982 showed an overdrawn position of £3,630
which did not match with her bank statement. Detailed examination of the two records revealed
the following:
(a) The debit side of the cash book had been undercast by £300.
(b) A cheque for £1,560 in favour of Z Suppliers Ltd., had been omitted by the bank from
its statement, the cheque having been debited to another customer’s account.
(c) A lodgement of £1080 on 30th November had not been credited by the bank.
(d) Interest amounting to £228 had been debited by the bank but not entered in the cash
book.

Question# 3
Hay has received his bank pass sheets for the year to 30 September 1993. At the date, his
balance at the bank amounted to £14,130 whereas his own cash book showed a balance of
£20,000. His accountant investigated the matter, and discovered the following discrepancies:

(a) Hay had brought down his opening cash book balance of £6,585 as a debit balance
instead of as a credit balance.
(b) Hay had entered a payment of £560 in his cash book as £650.
(c) Cheques drawn by Hay in July 1993 had not been presented to the bank.
(d) One of Hay’s customers had agreed to settle their debts £450 by direct debit though
nothing was entered in the cash books yet. Unfortunately, the bank had credited the
direct debit to another customer’s account.