Basic Bookkeeping

On 30 April 2007, the Cash Book Of Jim showed a balance at bank amount to $812

You found that:

(a) a cheque for $360 received by Jim and entered in his Cash Book on 30 April 2007 was not credIted by the bank until 3 May 2007

(b) Cheques issued by Jim on 27 April amounting to $289 were not paid by the bank until 2 May 2007

(c)On 30 April, the bank debited Jim’s account with $15 bank charges. No entry has been made in Jim’s Cash Book

(d) A customer settled his debt by credit transfer. The amount $394 was credited by the bank to Jim’s account on 20 April . but not entry has been made in Jim’s Cash Book.

Question:

Prepare:

( i) the adjusted Cash Book showing the balance in Jim’s account at 30 April 2007

(ii) a reconciliation of the balance shown by the Bank Statement with the adjusted Cash Book balance as at 30 Apri 2007

[ANSWER: ADJUSTED CASH BOOK BALANCE-$1,191 AND BANK STATEMENT BALANCE-$1,120]

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