Reference no: EM132557767

Question 1: Clark Company developed the following reconciling information in preparing its September bank reconciliation:

Cash balance per bank, 9/30 $30,800

Note receivable collected by bank 16,800

Outstanding checks 25,200

Deposits in transit 12,600

Bank service charge 210

NSF check 3,360

Using the above information, determine the cash balance per books (before adjustments) for the Clark Company.

Question 2: £235,000 of the amount received from trade receivables were net of 6% cash discount, and £14,800 of the amount received from customers was in respect of a debt written off as bad in the previous month. Credit balances in the Trade Receivables Ledger by the month end was

(a)£9,240. (b)£281,540 (c) £267,640 (d) £266,740

Question 3: As at 1 August 2012 the Trade Receivables ledger had £216,400 debit balances and £11,450 credit balance. Credit sales in August were £582,550 and sales returns £31,600. £498,200 has been received from credit customers. Identify the debit balance by the month end, assuming that the only additional information provided were those stated in each of the following alternative scenarios:

a) Discount allowed was £14,400 and credit balances by month end were £19,750

(a) £166,600 (b) £254,750 (c) £263,050

Question 4: A trade debt of £9,500 was written off as bad in August and a cheque for £14,100 received from a customer is returned dishonoured by the bank. Upon receipt of this cheque the customer had been allowed 6% cash discount. Discount allowed in the month was £9,400 and credit balances in the Trade Receivables Ledger by the month end was (a)£7,200. (b) £270,400 (c) £261,900 (d) £261,000

Question 5: During October 2012, purchases, purchases returns and amounts paid to suppliers were £728,450, £11,200 and £682,500 respectively. As at 1st October a list of Trade Payables Ledger balances included £149,550 credit balances and £7,400 debit balances. Identify the total of credit balances in the Trade Payables Ledger, by the month end, assuming that the only additional information provided are those stated in each of the following alternative scenarios:

a) Payments to trade payables include £280,250 paid taking advantage of 5% cash discount offered by the suppliers and by the month end the debit balances in the Trade Payables Ledger amounted to £5,200.

(a) £176,900 (b) £182,100 (c) £167,350

Question 6: Nilson Company gathered the following reconciling information in preparing its August bank reconciliation:

Cash balance per books, 8/31 $21,000

Deposits in transit 900

Notes receivable and interest collected by bank 5,100

Bank charge for check printing 120

Outstanding checks 12,000

NSF check 1,020

The adjusted cash balance per books on August 31 is