Prepare the bank account of berol limited in general ledger

Assignment Help Financial Accounting

Reference no: EM132846335

Question - On 30 April 2019 the accountant of Berol Limited closed the bank account with an unfavourable balance of R70, 80. However, the bank statement showed a favourable balance of R142, 75.

After comparing the cash journals with the bank statement, the following facts accounted for the differences:

1. The bank charges amounted to R15, 15 on the bank statement.

2. A cheque of R38, 00 from H. Artline, previously deposited, was returned by the bank marked "refer to drawer".

3. The bank debited the firm's account with R35, 00 in respect of a cheque no. 717. It was established that the cheque was drawn by H. Berrot. The bank agreed to correct the mistake in May.

4. According to the accountant the following cheques had not yet been presented to the bank for payment:

No. 002 - R18,00

No. 240 - R90,00

No. 247 - R124,00

No. 252 - R13,70

No. 260 - R37,00

Cheque no. 002 made out to P. Lekasie on 15 October 2018, was for repairing a water pipe. The cheque had elapsed and the amount is still owing to P. Lekasie by the firm.

5. Cheque no. 260 was presented to the bank for payment and was correctly shown as R37, 00. However, in the bank account it was shown as follows: Rental paid - R47, 00.

6. The annual stop order signed by Berol Limited for R45, 00 in favour of Pay More Insurers for the insurance cover of the premises payable annually on 25 April appears on the bank statement.

7. A deposit of R106, 00 deposited by Berol Limited on 27 April 2019 was erroneously credited to the bank account of Beralli Enterprises. The bank undertakes to correct the error in May.

8. A. Staedler paid his account on 29 April 2019 and deposited the amount directly into the bank account of Berol Limited, R165, 00.

9. Berol Limited has a fixed deposit of R400, 00 at the bank. R32, 00 interest was earned on this account up until 30 April 2019. The bank credited the account of Berol Limited with the interest.

Required -

1. Prepare the bank account of Berol Limited in the general ledger?

2. Prepare the bank reconciliation statement on 30 April 2019?

Reference no: EM132846335

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