Reference no: EM133185175
Question - Tarneit Retail Grocery (TRG) wants a bank reconciliation statement to be prepared for the month ended 30 April 2022 using the following information.
Final balance in the Cash at Bank account in the ledger of TRG (after all entries arising from the bank statement had been entered) was $31,440 Dr.
Balance shown by the bank statement at 30th of April was $32,500 Cr.
Cheques recorded in the cash payments journal but not presented to the bank for payment were:
Cheque no. - Amount
21 - $1,200
35 - $1,500
46 - $1,800
A deposit of $3,800 appears as a deposit in the cash receipts journal but had not been recorded by the bank at the date of the statement.
A cheque written by TRG for $400 appeared incorrectly in the bank statement as $40.
Required -
A. Prepare the bank reconciliation statement at 30th of April, 2022.
B. A manager of a small online business believes that now most of their transactions take place using electronic transfer of funds rather than cash or cheques and they no longer need to bank reconciliation each month as almost all funds' transfers are electronic anyway and go straight through the bank account. Explain to the manager why a bank reconciliation is still necessary for their business.