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  3. the following information relates to the cash position of acfs...

Question: the following information relates to the cash position of acfs...

Question details

The following information relates to the cash position of ACFS Pty Ltd, a financial services company:

 

1.     General ledger Cash at Bank account balance as at 31 July 2020 showed a balance of $15,000

2.     ACFS Pty Ltd Bank statement balance as at 31 July 2020 was $16,800

3.     Cheque # 62, a payment to accounts payable, was correctly written and paid by the bank for $808.  The amount entered into the cash payment journal for Cheque #62 was for $880

4.     31 July receipts amounting to $422 remain outstanding on the bank statement.

5.     A $625 deposit made by A. Johns was incorrectly credited to the bank account of ACFS Pty Ltd.

6.     A $380 cheque was returned marked ‘dishonoured’. The cheque had been received from S. Damon, a new customer.

7.     The bank statement shows that the bank has charged the business’s account with fees and charges of $60.

8.     Cheques issued which have not been presented total $1965

 

 

Required

 

a)    Prepare a bank reconciliation at 31 July 2020 based on the provided information. (4 Marks)

b)    Journalise the entries required by the reconciliation. (5 Marks)

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