ived its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060 and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are the entity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement
You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060 and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April.
Below are the entity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May:
|
AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders |
||||||
|
Dr |
Cr |
Balance $ |
||||
|
Balance brought forward |
103,965 |
CR |
||||
|
1 |
May |
Deposit |
11,700 |
115,665 |
CR |
|
|
3 |
May |
Deposit |
10,620 |
126,285 |
CR |
|
|
May |
Cheque # 682 |
4,680 |
121,605 |
CR |
||
|
6 |
May |
Deposit |
6,120 |
127,725 |
CR |
|
|
8 |
May |
# 671 |
6,300 |
121,425 |
CR |
|
|
9 |
May |
Deposit |
7,560 |
128,985 |
CR |
|
|
12 |
May |
Deposit |
3,780 |
132,765 |
CR |
|
|
May |
# 684 |
6,300 |
126,465 |
CR |
||
|
13 |
May |
# 683 |
15,300 |
111,165 |
CR |
|
|
15 |
May |
Deposit |
14,580 |
125,745 |
CR |
|
|
May |
# 687 |
13,320 |
112,425 |
CR |
||
|
20 |
May |
Deposit |
5,040 |
117,465 |
CR |
|
|
22 |
May |
# 685 |
12,240 |
105,225 |
CR |
|
|
26 |
May |
Deposit |
13,680 |
118,905 |
CR |
|
|
29 |
May |
# 686 |
11,340 |
107,565 |
CR |
|
|
30 |
May |
# 680 |
7,740 |
99,825 |
CR |
|
|
31 |
May |
interest |
345 |
100,170 |
CR |
|
|
31 |
May |
Transaction fees |
195 |
99,975 |
CR |
|
Mel Traders’ Book Records |
||||
|
Date |
Deposits made |
Cheques written |
||
|
$ |
No. |
$ |
||
|
May |
3 |
10620 |
# 679 |
4320 |
|
6 |
6120 |
# 680 |
7740 |
|
|
9 |
7560 |
# 681 |
6210 |
|
|
12 |
3780 |
# 682 |
4680 |
|
|
15 |
14580 |
# 683 |
15300 |
|
|
20 |
5040 |
# 684 |
6300 |
|
|
26 |
13680 |
# 685 |
12240 |
|
|
29 |
11340 |
# 686 |
6480 |
|
|
$ 72,720 |
# 687 |
13320 |
||
|
$ 76,590 |
The cash at bank account balance on 31 May was $102,435.
In reviewing cheques, a mistake was discovered: Cheque no. 686, written for insurance expenses of $11,340, was recorded in the general journal as $6,480.
Required:
- As the entity does not use special journals, prepare the necessary general
journal entries to bring the cash at bank account up to date as at 31 May 2021. - Prepare a
bank reconciliation statement for Mel Traders at 31 May 2021. Please ensure you indicate the balance of each amount with either a debit or credit in the bank reconciliation statement.
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