Question

Turner Excavation maintains a checking account. During July, the following checks were written and recorded in the accounting records (this information is from the Cash general ledger account): July 2 Cash, Check #301, $100 5 Office Rent Expense, Check #302, $650 13 Cash, Check #303, 997 15 Office Equipment, Check #304, $525 17 Supplies, Check #305, $133 18 Attorney Fees Expense, Check #306, $1,000 30 Advertising Expense, Check #307, $200.20 31 Cash, Check #308, $63.50

Answer 1

Books
Book balances		4,331.55
Add
Check issued but not cleared from the bank (306)		1,000.00
Check issued but not cleared from the bank (307)		200.20
Check issued but not cleared from the bank (308)		63.50
Sub total		1,263.70
Dedut
Deposit made in books but not credited in the bank (July 29)	2,350.00
Bank charges debited in the bank account but not booked in Cash books	2.50
Differnces of cash book with bank book for payment made in Check No 302	5.00
Sub total	2,357.50
Reconciled book balance		3,237.75
Bank Bank statement Balance               3,237.75 Add Deposit made in books but not credited in the bank (July 29)               2,350.00 Bank charges debited in the bank account but not booked in Cash books                       2.50 Differnces of cash book with bank book for payment made in Check No 302                       5.00 Sub total               2,357.50 Dedut Check issued but not cleared from the bank (306)               1,000.00 Check issued but not cleared from the bank (307)                   200.20 Check issued but not cleared from the bank (308)                     63.50 Sub total               1,263.70 Reconciled Bank balance balance               4,331.55 Journal entries in the books Date Particulars Dr Cr 31-Jul Bank 1000 Attorney expenses 1000 (Reversal of Attorney expense paid by check No 306) 31-Jul Bank 200.2 Advertisement 200.2 (Reversal of Advertise ment paid by check No 307) 31-Jul Bank 63.5 Cash 63.5 (Reversal of Cash check by check No 308) 31-Jul Cash 2350 Bank 2350 (Deposit made in the bank is reversed) 31-Jul Bank charges 2.5 Bank 2.5 (Bank charges booked in the books) 31-Jul Rent expenses 5 Bank 5 (Correct rent expenses paid by bank is booked) 3621.2 3621.2