Photo AI
Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Martin Tobin for the month of August 2010 - Leaving Cert Accounting - Question 3 - 2010
Question 3
Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Martin Tobin for the month of August 2010. Dr. Bank Account ... show full transcript
Worked Solution & Example Answer:Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Martin Tobin for the month of August 2010 - Leaving Cert Accounting - Question 3 - 2010
Step 1
Prepare a statement on 30/08/2010 reconciling the adjusted Bank Account balance with the Bank Statement balance.
Answer
To reconcile the adjusted bank account balance with the bank statement balance, the following steps are taken:
Bank Reconciliation Statement
| Details | Amount (€) |
|---|---|
| Adjusted Cash Book Balance | 7,455 |
| Add: Cheques drawn but not yet cashed | |
| 400103 G. Mitchell | 1,200 |
| 400104 T. Reid | 500 |
| 400105 P. Clarke | 1,840 |
| Total Additions | 3,540 |
| Less: Lodgements not yet credited | |
| Amount from Bank Statement | 1,900 |
| Less Bank Error (cheque dishonoured) | 270 |
| Balance as per Bank Statement | 7,205 |
| Final Balance | |
| Adjusted Balance as per Bank Statement | 7,205 |
| The reconciliation confirms that the adjusted Bank Account balance of €7,455 is properly aligned with the bank statement once uncashed cheques are accounted for. |