Question

Question 4 You have just received the 30 June 2020 bank statement of Zoom Electronics from Costco Bank. To assist you in your bank reconciliation, you have gathered the following information: 1) Zoom Electronics' cash account shows a balance of $2,900 on 30 June. ii) The bank statement includes two dishonoured cheques from customers of $400 (cheque number 190) and $110 (cheque number 192). The following Zoom Electronics cheques are outstanding at 30 June: Cheque number Amount Cheque number 137 188 191 194 195 196 Amount ($) 50 170 520 580 50 140 iv) vi) vii) Zoom Electronics collects from some customers through EFT. The June bank statement lists a $1,300 EFT deposit for a collection on account. The bank statement includes two deposits that Zoom Electronics has not recorded yet: $970 for dividend revenue and $80 interest revenue earned./ The bank statement included a $30 bank service charge. On 30 June, Zoom Electronics deposited $350 but this deposit is not reflected on the bank statement. The bank statement included a $1,000 deduction for a cheque drawn by Webex Ltd. Zoom Electronics has notified the bank of this error. The 30 June 2020 bank balance is $4,870. vili) ix) Requirements: a) Prepare the bank reconciliation for Zoom Electronics at 30 June 2020. b) Record the necessary journal entries (including narrations) from the bank reconciliation

Answer 1

	Bank Reconciliation Statement of Zoom Electronics
	as on 30th June 2020
	Particulars	Amount in "$"	Amount in "$"
	Opening Bank Balance		4870
Less:	Outsatanding Cheques	1510
	Total		1510
Add:	Depsited cash but not reflected in Bank Statement	350
	Dishonoued cheque of Webex Ltd	1000
	Total		1350
	Adjusted Bank Balance		4710
	Ending Book Balance		2900
Less:	Bank Service Charges	30
	Dishonoured Cheques from customers (Cheque No.190: $400 & Cheque No.192: $110 )	510
	Total		540
Add:	Direct Deposits from customers through EFT	1300
Add:	Dividend Revenue-$970 & Interest Revenue-$80	1050
	Total		2350
	Adjusted Book Balance		4710

Jourmal Entries
Sr. No.	Particulars	Debit '$'	Credit '$'
1	Bank Service Charges Account…….Debit	30
	To Cash Account		30
	(Being Bank service charges made)
2	Customer Account………………Debit	510
	To Bank Account		510
	(Being Dishonoured Cheques dishonoured from customers -Cheque No.190: $400 & Cheque No.192: $110 )
3	Bank Account………….Debit	1300
	To Customer Account		1300
	(Being Direct Deposits from customers through EFT)
4	Bank Account………….Debit	1050
	To Income Account		1050
	Being Dividend Revenue-$970 & Interest Revenue-$80 received)