Recording Financial Information NESCol

UNIT NO:
F7JV 34

RECORDING FINANCIAL
INFORMATION

Outcome 4
BANK RECONCILIATION
CORRECTION OF ERRORS

Alternative Assessment LO4

Recording Financial Information NESCol

Alternative Assessment LO4

J Blogg received the monthly Bank Statement for April which contained
the following Bank Statement

Part A

From the following information, update the cash book and prepare a bank
reconciliation statement.

Bank Statement

Date Dr Cr Balance
Apr 1 Balance 1083.20
5 Cheque 250.00 1333.20
7 Cheque 20.00 1353.20
8 Cash 32.50 1385.70
9 Cheque (error by bank) 33.00 1352.70
11 Cheque 82.20 1270.50
11 Bank Giro Credit 130.00 1400.50
12 Cheque 6.10 1394.40
16 Inland Revenue 200.00 1194.40
19 Cheque 199.00 995.40
24 Cash 55.35 940.05
25 Bank Charges 20.00 920.05

Cash Book

Date Dr Cr Balance
Apr 1 Balance 1083.20
5 J King 250.00 1333.20
7 R Reid 20.00 1353.20
7 J Masson 82.20 1271.00
8 Cash Sales 32.50 1303.50
12 K Reid 6.10 1297.40
16 Inland Revenue 220.00 1077.40
19 S Kennedy 199.00 878,4
24 Wages 55.35 823.05
25 S Sutherland 330.00 1153.05
29 R Ritchie 30.00 1123.05

The cheque paid on the 9th of April for £33 was wrongly deducted by the
Bank.
Any other errors were made by the bookkeeper.
Recording Financial Information NESCol

Suspense Accounts part b

J Blogg has checked his book-keeping records and has discovered that a
number of errors have been made. On preparing his trial balance, a
suspense account is opened for £5 credit

The following errors have been detected:-

1. A credit note as been received from our supplier R Reid for £79 and
was entered in the purchase returns account and his account for £97.
2. Insurance has been undercast by £50
3. Sales Day book has been undercast by £100
4. Discount Allowed of £15 has been credited to J Sutherland account
but the other side of the entry was not complete
5. A computer was sold for £100 but was credited to the sales account in
error
6. Sales valued at £300 was posted to B Ritchie instead of C Ritchie
7. Purchases from A Duthie for £150 was correctly recorded in the
purchases account but was recorded in the Suppliers account as £180
8. A sales invoice to J Masson for £200 + VAT has been omitted from the
books.

Required:

(a) Prepare journal entries (including narratives) to correct the above

errors

(b) Open, post to and clear the suspense account