Solution-Prepare the general ledger account for cash at bank

Prepare the general ledger account for cash at bank

Reference no: EM13504716

Question

You are the accountant for ColourfulPollies Flower Shop. You are required to complete the bank reconciliation for the business for the month ended 30 April 2012. The bank reconciliation for March 2012 is as follows:

ColourfulPollies Flower Shop Bank Reconciliation as at 31 March 2012
Balance per bank statement 31 March 2012	$4634.58 Cr
ADD: Outstanding deposit	432.67
	5067.25
LESS: UnpresentedCheques Cheque No 5467 $67.35 5468 134.89 5470 287.34	489.58
Balance per Cash at Bank account as at 31 March 2012	$4577.67Dr

Abridged cash receipts and cash payments journal are shown below. Both journals have been finalised and posted to the general ledger account as at 30 April 2012.

Cash Payments Journal
Date	Account	Cheque no.	Cash at Bank
2012
Apr-01	White Ltd	5471	345.67
2	Blue Ltd	5472	189.60
4	Wages and salaries	5473	880.00
5	Petty cash	5474	54.65
	D. Red	5475	125.60
8	Tan & Sons	5476	54.90
9	Calpol Petrol	5477	95.00
	Accommodation	5478	235.40
11	Green & Partner	5479	584.30
12	Electricity Ltd	5480	720.89
15	Big Gas Corporation	5481	220.54
	Telephone Company	5482	325.90
17	Advertising	5483	220.00
18	Wages and salaries	5484	880.00
19	Donation - Blue Cross	5485	50.00
22	Freight	5486	80.00
24	Purchases	5487	2 080.90
25	Calpol Petrol	5488	56.80
26	R Vermillion	5489	125.00
29	Petty Cash	5490	42.05
30	T Crimson	5491	38.70
			7 405.90


Cash Receipts Journal
Date	Account	Cash at Bank
2012
Apr-01	Sales	599.54
2	G Whitlam	56.98
	Sales	515.90
4	P. Gorton	64.00
	Sales	602.78
5	Sales	548.70
8	B Hawke	98.00
	J Howard	45.68
	Sales	555.60
9	Sales	525.00
12	P Keating	34.65
	Sales	502.40
15	Sales	519.56
17	B McMahon	35.40
	G Whitlam	22.20
	Sales	440.86
19	P Keating - dishonored cheque	-34.65
	Sales	498.90
22	Sales	548.65
26	B Sneddon	34.50
	Sales	536.00
29	Sales	506.80
30	Sales	480.65
		7738.10

ColourfulPollies
Bank Statement for 31 March 2012 - 30 April 2012

Date	Particulars	Debit	Credit	Balance
2012
Apr-01	Balance			4,634.58	CR
2	5468	134.89		4,499.69	CR
	Deposit		432.67	4,932.36	CR
	Deposit		599.54	5,531.90	CR
3	Deposit		572.88	6,104.78	CR
4	Term Deposit maturing		10,527.10	16,631.88	CR
	5471	345.67		16,286.21	CR
	5472	189.60		16,096.61	CR
	5473	880.00		15,216.61	CR
	Deposit		666.78	15,883.39	CR
5	5474	54.65		15,828.74	CR
	Deposit		548.70	16,377.44	CR
6	5470	287.34		16,090.10	CR
8	Deposit		699.28	16,789.38	CR
9	5477	95.00		16,694.38	CR
	Deposit		525.00	17,219.38	CR
10	Term Deposit invested	15,000.00		2,219.38	CR
12	5475	125.60		2,093.78	CR
	5478	235.40		1,858.38	CR
	Returned Cheque	98.00		1,760.38	CR
	Deposit		537.05	2,297.43	CR
15	5479	584.30		1,713.13	CR
	5476	54.90		1,658.23	CR
	5481	220.54		1,437.69	CR
	Deposit		519.56	1,957.25	CR
17	5482	325.90		1,631.35	CR
	5479	584.30		1,047.05	CR
	Deposit		498.46	1,545.51	CR
18	5484	880.00		665.51	CR

19	5480	720.89		55.38	DR

	5483	230.00		285.38	DR
	Deposit		498.90	213.52	CR
	Returned Cheque	34.65		178.87	CR
22	5486	80.00		98.87	CR
	Deposit		548.65	647.52	CR
26	5485	50.00		597.52	CR

	5487	2,080.90		1,483.38	DR

	Deposit		570.50	912.88	DR

29	5488	56.80		969.68	DR

	5490	42.05		1,011.73	DR

30	Deposit		506.80	504.93	DR

	Bank Charges	60.00		564.93	DR

	Interest Paid	8.00		572.93	DR
	TOTAL	23,459.38	18,251.87

The following is a copy of the bank statement for the month of April 2012.

Additional information:

Cheque No 5483 - the invoice amount from the Sydney Morning Herald was for $230
4 April - A term deposit matured and was deposited directly to the bank account. The amount included interest of $527.10
10 April - A new term deposit commenced for $15 000 for a term of 6 months

Required:

1) The final totals from the Cash Receipts and Cash Payments Journals have been posted to the General Ledger account for Cash at Bank, prepare any journal entries required to reconcile the bank statements to the general ledger at 30 April 2012. Narrations are required.

2) Prepare the general ledger account for Cash at Bank (in T-account format) showing the final account balance as at 30 April 2012.

3) Prepare the bank reconciliation statement as at 30 April 2012.

4) With the completion of the bank reconciliation, outlinethree conclusions can be drawn regarding controls over cash and the usefulness of preparing a bank reconciliation.

Reference no: EM13504716

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Prepare the general ledger account for cash at bank

Reference no: EM13504716

Reference no: EM13504716

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