AAT L1
Manual
NAS
Greenmoor Enterprises
You have been employed as the cashier for Greenmoor, the previous cashier left
leaving a month’s worth of transactions, the accountant made arrangements for
cheques to be deposited and sent out. From that information post the transactions to
the analysed cash book.
Future exercise- reconcile the bank account and write up the bank reconciliation
statement.
Task 1.
Enter the month’s transactions to the cash book
Date
June 2011st
Transaction/information
2nd
sent out cheque to Apollo Services for £207.74 using cheque no 4614
2nd
received £148.92 cash for cash sales includes VAT
5th
paid by cheque £204.30 for premises rent & rates using cheque no 4615
(transaction is exempt from VAT)
7th
sent out cheque to Trent & Tasters for £480.45 cheque no 4616 taking
the settlement discount of £23.50
8th
received cheque from Ayredale Golf Club for £490.70 in settlement of
their debt of £515.24
10th
received cheque to the value of £64.00 for the Commission Received,
this is zero rated VAT
12th
paid £95.60 in cash for purchases this value included VAT
12th
sent out cheque to Shannon Springs for £509.76 cheque no 4617 taking
the £24.36 discount
14th
received cheque from Abbey Machinery for £268.96 in settlement of
their debt
14th
sent out cheque to Express Carriers (GE) for £179.92 cheque no 4618
18th
received cash from Pyramid Factors to the value of £204.98 with
settlement discount of £10.18
19th
received cheque from Goodkins for £607.60 for their debt plus the
settlement discount of £30.40
20th
the bank sent back the cheque from Abbey Machinery worth £268.96
stating ‘refer to drawer’. Process the return entry for the cheque value
and identify where the other side of the entry would be posted.
20th
sent out cheque for £250.50 including VAT £41.75, for telephone
charges, cheque no 4619.
balances carried down from previous month: £490.62 cash in hand,
£507.38 in the bank
1
AAT L1
Manual
NAS
22nd
sent out cheque to Hongling Imports for £226.48 cheque no 4620 in
settlement of the £242.82 owed
23rd
received £215.24 cash for sales this includes VAT
25th
bank £250.00 excess cash
26th
received cheque from Russell Ltd for £482.28 with £20.80 discount
allowed
26th
sent out cheque to Paravella Ltd for £359.59 cheque no 4621
28th
received cheque from Selby Manufacturing for £214.94
28th
paid £207.90 in cash for purchases this includes VAT
30th
received cheque from Castle Hotels for £335.56 in settlement of their
debt of £353.22
...................
Task 2.
Task 3.
Total the columns to ensure accuracy
Balance the cash book, bringing down the balance for the new month.
Future exercise: Bank Reconciliation
Task 1.
Task 2.
Task 3.
From the work sheet introduced for this exercise, reconcile the bank
account in the cash book against the bank statement, any entries shown
in the statement but not in the cash book need to be posted.
Total the discount columns and balance the cash and bank account in
the cash book.
Identify the transactions recorded in the cash book but not yet
processed through the bank. Record the details into the Bank
Reconciliation Statement showing the bank statement value as the
initial entry, reconciling to the revised bank account in the cash book.
Give details of the transactions not just the values.
2
AAT L1
Manual
NAS
Bank Statement
Date
June 1
June 6
June 8
June 10
June 12
June 12
June 14
June 16
June 17
June 19
June 22
June 25
June 26
June 27
June 29
June 30
Details
Balance b/d
Cheque 4614
Deposit
Cheque 4615
SO Ace Insurance
Deposit
Cheque 4616
BGC Datar Industries
Cheque 4617
Deposit
Cheque 4618
Deposit
Deposit
BACS Palms Golf club
Cheque 4620
Bank charges
Dr
Cr
Totals
1973.43 2634.62
207.74
490.70
204.30
128.46
64.00
480.45
350.00
509.76
607.60
179.92
250.00
482.28
390.04
226.48
36.32
Bank reconciliation statement of ________________________
As on_______________________________
£
£
Balance as Bank Statement
Add lodgements
Less cheques
Balance as updated cash book
3
Balance
507.38
299.64
790.34
586.04
457.58
521.58
41.13
391.13
118.63DR
488.97
309.05
559.05
1041.33
1431.37
1204.89
1168.57
1168.57