Question

Cat Ltd. received the bank statement from CC Bank showing a balance of $27,000 at 30th June 2017. The book of Cat Ltd. showed a cash balance $28,000 as at 30th June 2017. No outstanding checks were carried over from last month and no deposits in transits were noted at the end of last month. You are the accountant and need to prepare the bank reconciliation at 30h June, using the following information: 1. Cat Ltd. had deposited total checks of $23,400 as at 30h June, but the bank showed deposit of $10,000 in the bank statement. 2. A check $500 issued by Shy Ltd. in favour of Cat Ltd. was returned by the bank because of insufficient fund. 3. Cat Ltd. issued a check of $3,600 for payment of equipment, but the company's assistant accountant erroneously recorded in accounting records as $4,600. 4. Service charged by bank, $400. 5. Total checks written by Cat Ltd. was $29,000 for paying the company's expenses but the checks cleared by the bank was $22,000. 6. A note receivable of $5,300 was credited directly to Cat Ltd.'s bank account. ah Ssrwitecoargea byronksio .rded n Required: (a) Prepare a bank reconciliation statement as at 30h June 2017. Show your (14 marks) (b) Prepare the journal entries that should be made in the accounting records of Cat (6 marks) workings. Ltd. as a result of the above bank reconciliation.