Question

In: Accounting

vBelow is information about Lisa Ltd’s cash position for the month of June 2019. 1. The...

vBelow is information about Lisa Ltd’s cash position for the month of June 2019.

1. The general ledger Cash at Bank account had a balance of $21,200 on 31 May.

2. The cash receipts journal showed total cash receipts of $292,704 for June.

3. The cash payments journal showed total cash payments of $265,074 for June.

4. The June bank statement reported a bank balance of $41,184 on 30 June.

5. Outstanding cheques at the end of June were: no. 3456, $1,448; no. 3457, $84; no. 3460, $70 and no. 3462, $410.

6. Cash receipts of $10,090 for 30 June were not included in the June bank statement.

7. Included on the bank statement were:  a dishonoured cheque written by a client James Ltd, $136  a credit for an electronic transfer from a customer of $644  interest earned, $44  account and transaction fees, $120

Required:

a) Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for June.

b) Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. (1 mark)

c) Prepare a bank reconciliation statement at 30 June.

d) What is the amount of cash that should be reported on the 30 June balance sheet?

Expert Solution

a.

Cash Receipts Journal
Date	Particulars	Cash at Bank
30-Jun	Progress, Total	292,704.00
	Dishonoured Check	- 136.00
	Electronic transfer	644.00
	Interest revenue	44.00
	Total	293,256.00

Cash Payment Journal
Date	Particulars	Cash at Bank
30-Jun	Progress, Total	265,074.00
	Account & Transaction fee	120.00
	Total	265,194.00

b.

Cash at Bank
01-Jun	Beg Bal	21200	30-Jun	Cash payment journal	265,194.00
31-Dec	Cash Receipt Journal	293,256.00	30-Jun	End Bal	49,262.00
		314,456.00			314,456.00

c.

LISA LTD
Bank Reconciliation Statement
as at 30 June
Balance as per bank statement Cr		41,184.00
Add: Outstanding deposit		10,090.00
Less: Unpresented cheques:
No 3456	1,448.00
No 3457	84.00
No 3460	70.00
No 3462	410.00	2,012.00
Balance as per Cash at Bank account Dr		49,262.00

d . 49,262

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