4 On 30 April 2017 Nor received the following bank statement. Date Details 2017 Debit Credit Balance $ $ $ April 1 Balance 490 Cr April 5 Rent receivable April 13 XYZ Supplies Ltd 450 240 Cr April 20 The Repair Company 175 65 Cr April 20 Cash sales banked 640 705 Cr April 25 Commission 250 955 Cr April 25 United utilities – DD April 27 Cash withdrawal April 29 Dividend 200 690 Cr 150 805 Cr 90 715 Cr 15 730 Cr Nor compared the bank statement with her cash book. REQUIRED (d) Bring the cash book (bank columns) of Nor up to date. Balance the cash book and bring down the balance on 1 May 2017. Cash Book (bank columns) Date Details $ 2017 Date Details $ 2017 April 1 Balance b/d 490 April 11 XYZ Supplies Ltd 450 April 5 Rent receivable 200 April 14 West Electricity 325 April 18 Cash sales 640 April 17 The Repair Company 175 April 30 Cash sales 510 April 27 Cash 90 April 28 Adam 1455 [4] © UCLES 2017 7110/21/M/J/17 5 (e) Prepare the bank reconciliation statement at 30 April 2017. Bank Reconciliation Statement at 30 April 2017 Balance on bank statement $ 730 Credit Plus ............................................................................................................................................ ................................................................................................................................................... ................................................................................................................................................... Less ........................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... Balance on bank account .......................................................................................................... [4] (f) Explain the abbreviation DD as used in the United utilities payment on 25 April. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ...............................................................................................................................................[2] [Total: 20] © UCLES 2017 7110/21/M/J/17 [Turn over 2 1 The following extract was taken from Abbie’s cash book on 30 September 2015. Cash Book (Bank Columns) Date Sept Details $ Date Details $ 1 Balance b/d 290 Sept Husna 102 9 L Lee 475 17 Yang Stores 849 15 Ng 150 23 Lam 364 21 JG Supplies 980 26 Xevera 500 29 Sampson 625 30 Balance c/d 705 8 2520 Oct 1 Balance b/d 2520 705 Abbie received the following bank statement on 1 October 2015. Date Sept Details Debit Credit Balance $ $ $ 1 Balance 290 Cr 9 L Lee 10 Husna 15 Ng 150 813 Cr 22 JG Supplies 980 1793 Cr 23 Bank charges 24 25 475 102 663 Cr 35 1758 Cr Ng – Dishonoured 150 1608 Cr YJ Electric 250 1358 Cr Abbie compared the bank statement with her cash book. © UCLES 2015 765 Cr 7110/22/O/N/15 3 REQUIRED (a) Bring Abbie’s cash book up to date. Balance the cash book and bring down the balance on 1 October 2015. Cash Book (Bank Columns) Date Oct Details 1 Balance b/d $ Date Details $ 705 [4] (b) Prepare the bank reconciliation statement at 1 October 2015. Bank Reconciliation Statement at 1 October 2015 $ Balance as per bank statement $ 1358 Plus ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... Less ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... Balance as per cash book ........................................................................................................ [5] © UCLES 2015 7110/22/O/N/15 [Turn over 2 1 Kylie Johnson’s cash book (bank columns) had a debit balance of $460 on 30 April 2006. The bank statement at the same date showed that Kylie had a balance at the bank of $323. On checking the cash book against the bank statement the following differences were found. 1 A debtor, Nancy Tan, paid $80 directly into the bank. This had not been recorded in the cash book. 2 Bank charges, $50, were included on the bank statement but had not been recorded in the cash book. 3 Insurance paid, $32, was recorded on the bank statement but not in the cash book. 4 A cheque, $140, sent to a creditor had not yet been presented to the bank for payment. 5 A transfer of $125 from the business bank account to Kylie’s private bank account had been entered in the cash book but not on the bank statement. 6 An amount of $400 paid into the bank on 29 April did not appear on the bank statement. REQUIRED (a) Starting with the balance on 30 April 2006, update the cash book and bring down the amended balance. Dr Kylie Johnson Cash Book (bank columns) Cr [6] © UCLES 2006 7110/02/M/J/06 For Examiner's Use 3 (b) Prepare the bank reconciliation statement to reconcile the adjusted cash book balance with the bank statement balance at 30 April 2006. For Examiner's Use Kylie Johnson Bank Reconciliation Statement as at 30 April 2006 [7] (c) Explain how the following would appear in the ledger accounts of Kylie Johnson: (i) Bank overdraft; [2] (ii) Short term loan from the business to Kylie Johnson. [2] [Total: 17] © UCLES 2006 7110/02/M/J/06 [Turn over For Examiner’s Use 2 1 Vigo’s cash book (bank columns) showed the following entries. Vigo Cash Book Dr July 1 10 19 31 Balance b/d Cash Parker Cash $ 1450 500 260 200 Cr July 7 16 24 Singh Robinson Kings $ 920 480 220 The following bank statement was received by Vigo. Date Details Withdrawn $ July 1 10 12 19 21 22 25 31 Balance b/f Cash Singh Parker Robinson Dishonoured cheque – Parker Dividend Bank charges Paid in $ 500 920 260 480 260 25 20 Balance $ 1450 1950 1030 1290 810 550 575 555 REQUIRED (a) Calculate the cash book balance on 31 July. Prepare and update the cash book. Bring down the balance. Dr Vigo Cash Book Cr .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................[5] © UCLES 2004 7110/02 O/N/04 3 (b) Prepare a bank reconciliation statement to reconcile the adjusted cash book balance with the bank statement balance at 31 July 2004. For Examiner’s Use Vigo Bank Reconciliation Statement as at 31 July .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................[6] (c) Explain how the cash book is both a book of prime entry and a ledger account. .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................[2] [Total: 13] © UCLES 2004 7110/02 O/N/04 [Turn over
