Question

39016 3 5.416 019 • The balance ding cho 135416 100 dentity which is Questa

Answer 1

And to Ques 3 Blue Company Bank Statement June 30.2019 Bank Balance as per Cash Book Bank Balance as per Bank Statement 35,416 40,911 Excess Cash Payment (255-225) Deposit not recorded Deposits in transit 8,000 Add 1,000 Bank Service Charges not recorded Outstanding Cheques 3,500 Less 40,916 40,916 Debit Credit Journal Entries Accounts Cash Account To Expense Account (Being excess cash payment made, now rectified) Bank Service Charges Account To Cash Account (Being bank service charges not recorded earlier, now rectified) And to Ques 1 Debit Credit Date July 1,2018 5000 5000 TAccount Title Insurance Premium To Cash (Being insurance premium paid for two years) Cash To Advance from Customers Oct 1. 2018 44001 Dec 31, 2018 (Being advance received for services to be provided over the next two years) Prepaid Insurance To Insurance Premium (Being insurance for the next year transferred to prepaid insurance 2500 Note: It is assumed insurance for both the years are same No rectification is required for advances from customers. Advances from customers will be offsetted as and when services are rendered debiting advances account and crediting accounts receivable And to Ques 2 Uncollectible Days Outstanding Accounts Receivable 1-30 days 31-60 days 61-90 days Over 90 days Total Already recorded To be recorded 157,000 89,000 51,000 27,000 324,000 4% Uncollectible Acc Rec 1,570 1.780 $ 2.040 $ 5,670 I$ 11.060 $ 1,000 $ 10,060 Date Account Title Debit Credit Dec 31,2018 Uncollectible Receivable Expense 10,060 To Allowance for Uncollectible Receivables 10,060 (Being additional provision for uncollectibles made as per the estimation)