Question

Idul 10S The following information is the cash account and the bank statement of Pretty Pet Shop at 30 June 2019. Pretty Pet Shop Cash account 2019 2019 May 31 Balance 1,410 Jun 5 Check written 180 (no.882) Jun 1-30 Deposits 3,800 Jun 13 Check written 591 (no.883) Jun 16 Check written (no.884) Jun 30 Check written (no.885) Jun 30 Check written 979 Jun (no.886) 30 Balance 2,266 784 HKCC Bank Bank Statement 1,410 662 (180) 894 2019 May 31 Jun 7 Jun 8 Jun 16 Jun 17 Jun 18 Jun 29 Jun 29 Jun 30 Jun 30 Jun 30 Jun 30 Balance Deposits Check no. 882 Deposits Check no. 883 Check no.884 NSF check - Mr. Lo (a customer) Dividends - CPL Note and interest collected Deposits Bank charges Balance (519) (410) (108) 500 2,460 964 (43) 5,630 Additional information: 1. No deposit-in-transit and outstanding check were carried forward from last month. 2. The note and interest collected by the bank represented a $2,400 10% six-month note receivable issued on 1 January 2019 and matured on 30 June 2019. The interest is received quarterly (i.e. at the end of every three months) 3. The check no. 883 was written to settle the account payable which was recorded in error in the company's record. 4. Pretty Pet Shop adjusts its accounts monthly. Required: (a) Prepare a bank reconciliation statement as at 30 June 2019. (11 marks) (b) Prepare the reconciling journal entries that should be made in the accounting records of Pretty Pet Shop. (9 marks)

Answer 1

	Bank Reconcilaiation statement
	For the period ending 30 June 2019
	Unadjusted balance as per bank		$5,630
	Add: Deposits in transit (3800-662-894-964)		1280
			$6,910
	Less: otstanding checks
	Check no 885	784
	Check no 886	979	1763
	Adjusted Balance		$5,147
	Unadjusted balance as per Books		$2,266
	Add:
	Note amd interest collected	2460
	Dividend-CPL	500
	Error made in books to record check 883	72	3032
			$5,298
	Less:
	NSf	108
	Bank charges	43	151
	Adjusted balance as per books		$5,147
Date	Accounts Title	Dr	Cr
1)	Cash	2460
	Notes rEceivable		2400
	Interest revenue		60
2)	Accounts Receivable	108
	Cash		108
3)	Cash	43
	Accounts payable		43
4)	Cash	500
	Dividend Revenue		500
5)	Miscelleneous expense	43
	Cash		43
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