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Question about suggested answered to previous paper, URGENT

  • 328 posts
  • # 54622

Hi Everyone,

I am revising level 2 and a question regarding answered suggested by ICB has arisen!

Who shall i address the question to??? It is regarding Bank reconciliation.It appears that few cheque transactions have not been taken into account even though it is obvious they do not match the bank statement and cash book. The question are on June 09 and Feb 09 papers. Can please someone help me on this.


Thanks,

Nathalie



Edited at 20 Feb 2011 10:37 AM GMT

  • 23 posts
  • # 54623

Hi Nathalie,

For Feb 09 is this q1 and for June 09 is this q2 ?


Mark.

  • 328 posts
  • # 54624

Mark said:

“Hi Nathalie,

For Feb 09 is this q1 and for June 09 is this q2 ?


Mark.

Hi Mark

June 09

Following figures do not match the bank statement and the cash book:

CH99, CH 100,DD XPHONE,DD NORWICH UNION, CHARGES, GOLF CLUB FEES

Correction sugggested have not taken not CH99 AND CH100 into account. i am wondering why.

==========================================================

Feb 09

Same problem for figure CH 408
So far i managed to resolve other papers but got stuck on these two.

Can please someone look into this and advise.I believe that student on the same boat will understand my worry. Any help from senior members would also be helpfulFrown

Thanks,

Nathaliexx 

  • 23 posts
  • # 54635

Hi Nathalie,

Here goes, June 09:

First of all you open a new cash book that will only include the items that are missing from the 1st cash book but are shown on the 1st bank statement:

DR = Your opening Balance B/D is the Balance B/.D figure shown on the 1st cash book, here it is £679.00.
CR = The items shown on the bank statement but missing from the 1st cash book, here it is DD XPHONE, DD N/UNION, CHARGES , GOLF CLUB FEES.

Balance off this new cash book for a new Balance B/D figure.

Re-check your studies for the above and you will see noted that you start a new cash book with the missing items only to get a new cash book balance figure

Task 2

Balance as per Closing Bank Statement = £1399.00, as shown
Add outstanding lodges = This is an item in the cash book that is not shown on the bank statement
Less unpresented chq's= These are the items in the cash book that are not listed in the bank statement, as 105 for example....
Balance as per cash book = You should hopefully get the same answer here as the new cash book balance you have worked out.

Note: Chq 99 & 100 = many students get stuck on this bit. Your opening cash book balance b/d is £550.00, whereas your opening bank statement balance is shown as £329.50. The difference here is £220.50, which is the added value of these 2 chq's. Always have a look at the b/d figures on questions like these to see if there is a difference. Saves you time spent trying to find chq's or payments !

Feb 09

Check the 2 b/d figures on the cash book and bank statement. This is where your £300.00 has gone, same as above.

As June 09, open a new cash book and do exactly the same thing and again for task 2, the same procedure applies (hint, your closing bank statement balance is overdrawn so will be minus £10.00).

Hopefully all is clear, any other probs let me know.

Good luck.

Mark.

  • 328 posts
  • # 54642

Mark said:

Hi Nathalie,

Here goes, June 09:

First of all you open a new cash book that will only include the items that are missing from the 1st cash book but are shown on the 1st bank statement:

DR = Your opening Balance B/D is the Balance B/.D figure shown on the 1st cash book, here it is £679.00.
CR = The items shown on the bank statement but missing from the 1st cash book, here it is DD XPHONE, DD N/UNION, CHARGES , GOLF CLUB FEES.

Balance off this new cash book for a new Balance B/D figure.

Re-check your studies for the above and you will see noted that you start a new cash book with the missing items only to get a new cash book balance figure

Task 2

Balance as per Closing Bank Statement = £1399.00, as shown
Add outstanding lodges = This is an item in the cash book that is not shown on the bank statement
Less unpresented chq's= These are the items in the cash book that are not listed in the bank statement, as 105 for example....
Balance as per cash book = You should hopefully get the same answer here as the new cash book balance you have worked out.

Note: Chq 99 & 100 = many students get stuck on this bit. Your opening cash book balance b/d is £550.00, whereas your opening bank statement balance is shown as £329.50. The difference here is £220.50, which is the added value of these 2 chq's. Always have a look at the b/d figures on questions like these to see if there is a difference. Saves you time spent trying to find chq's or payments !

Feb 09

Check the 2 b/d figures on the cash book and bank statement. This is where your £300.00 has gone, same as above.

As June 09, open a new cash book and do exactly the same thing and again for task 2, the same procedure applies (hint, your closing bank statement balance is overdrawn so will be minus £10.00).

Hopefully all is clear, any other probs let me know.

Good luck.

Mark.


Thanks Mark,

Your explanation is very clear, my problem is the bank statement i have from the question is listing CH99 and CH100 item which are missing from from the cash book. Therefore the cash book update should have taken these two items into account.
May be I should double check the questions and make sure the bank statement correspond to the question i am trying to answer to.The only explanation i could possible think off is may be i have mixed up the papers cause i have got a few of them.

If you have the June 09 paper can you please tell me if the bank statement is titled "Brian Smith" starting from the 01 of march with CH99, followed by 02 nd of March with CH100?

Nathaliexxx

  • 273 posts
  • # 54653

Hi Nathalie

It's more a case of stop worrying about it......

Both these cheques would have been in the previous month's cashbook.

The reason why ..... you would normally write a cheque, post it and by the time the supplier received the cheque and banked it it can take up to ten days before it appears on your bank statement sometimes even longer.

Therefore a cheque appearing in the first few days of the month's statement will usually appear in the previous month's cash book.



Edited at 21 Feb 2011 10:42 PM GMT

  • 23 posts
  • # 54656

Hi Nathalie,

Hopefully the explanation form Liz D will help you understand chq's and when they may or not appear on Bank Statements, thx Liz.

and yes the June09 paper is Brian Smith.

Anything else, let us know.

Mark.

  • 273 posts
  • # 54657

Any time Mark Smile - could feel the pain

  • 273 posts
  • # 54658

Any time Mark Smile - could feel the pain

  • 328 posts
  • # 54660

Mark said:

“Hi Nathalie,

Hopefully the explanation form Liz D will help you understand chq's and when they may or not appear on Bank Statements, thx Liz.

and yes the June09 paper is Brian Smith.

Anything else, let us know.

Mark.”

Hi Mark,

Yes Mark, Liz explanation has put my minds at ease! It makes sense as it is manual bookkeeping.

Thanks to both of you. Wink

Nathaliexxx

Edited at 22 Feb 2011 12:45 PM GMT

  • 328 posts
  • # 54661

Mark said:

“Hi Nathalie,

Hopefully the explanation form Liz D will help you understand chq's and when they may or not appear on Bank Statements, thx Liz.

and yes the June09 paper is Brian Smith.

Anything else, let us know.

Mark.”

Hi Mark,

Yes Mark, Liz explanation has put my minds at ease! It makes sense as it is manual bookkeeping.

Thanks to both of you. Wink

Nathaliexxx

Edited at 22 Feb 2011 12:45 PM GMT

  • 328 posts
  • # 54662

Hi Mark,

Yes Liz' explanation has put my mind at ease. It makes sense!

Thanks to both you.

Nathaliexxx

  • 328 posts
  • # 54663

x

Edited at 22 Feb 2011 12:47 PM GMT

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