ACC101 Tutorial Qs
Aug.intake 2021 Week 7
Exercise 11.2
Composition of cash
On 30 June, Sophisticated Coffee had the following on its premises:
1. 18 blank cheque forms
2. a cheque for $275 received from a customer on 28 June but dated 1 July
3. cheques dated 28–30 June for the total amount of $2384 received from customers on
30 June.
4. postage stamps to the value of $12.10 [Revenue stamps]
5. a $600 IOU (I Owe You – Letter) from an employee representing a short-term loan
6. currency and coin, $872.
Required
(a) What total dollar amount should be included in ‘cash’ at 30 June?
(b) Explain how any items not included in ‘cash’ should be reported in a balance sheet
prepared on 30 June.
(LO1)
(a)
6. Currency and coin
$872
3. Cheques dated 28–30 June
2 384
Total included in cash
$3256
(b)
5. The $600 IOU should be reported as a receivable from employees.
2. The $275 post-dated cheque should be reported as an account receivable.
1. and 4. would not be reported on a balance sheet.
Exercise 11.7
Bank reconciliation
Sandy Poglase, owner of Sandy’s Sandwiches, wants a bank reconciliation statement to
be prepared for the month ended 31 March 2019 using the following information:
1. Final balance in the Cash at Bank account in the ledger of Sandy’s Sandwiches (after
all entries arising from the bank statement had been entered) was $13 204.26 Dr.
2. Balance shown by the bank statement at 31 March was $13 155.10 Cr.
3. Cheques recorded in the cash payments journal but not presented to the bank for
payment were as follows.
ACC101 Tutorial Qs
Aug.intake 2021 Week 7
4. A deposit of $1270.30 appears as a deposit in the cash receipts journal but had not
been recorded by the bank at the date of the statement.
Required
(a) Prepare the bank reconciliation statement at 31 March, 2019.
(LO3)
Bank reconciliation statement as at 31 March 2019
$
$
Balance as per bank statement, Credit
13,155.10
Add Uncredited deposits
1,270.30
Add Bank error (if it debited in the bank statement)
–
14,425.40
Less Unpresented cheques:
Cheque No. 41
43
46
51
339.50
262.64
423.90
195.10
(1221.14)
Less Bank error (if it credited in the bank statement)
–
Balance as per cash at bank account, Debit
13,204.26
