Revision question on how to perform the bank reconciliation

The following is a summary from the cash book of BW Ltd for July 2015:

Opening balance 1,530
Receipts 23,104
Payments (23,005)
Closing balance 1,629

On investigation, it was discovered that:

i)   Bank charges of TZS 15 shown on the bank statement have not been entered into the cash book.

ii)  A cheque drawn for TZS 110 to pay a supplier has been entered in the cash book as a receipt.

iii) A cheque from a customer for TZS 120, which was banked (and included above in receipts), has been returned by the bank, but this has not been adjusted in the company’s books.

iv) An error of transposition which occurred in the opening balance of the cash book should have been recorded as TZS 1,350.

v)  Cheques totaling  TZS 264 have been sent by post to suppliers but were not presented to the company’s bank until August 2015.

vi) The last page of a bank account paying-in book shows a deposit of TZS 1,040 which was not credited to the account by the bank until 1st August 2015.

vii)The company’s bank statement at 31st July 2015 shows a balance of TZS 318.


a)  Demonstrate any adjustments needed to the company’s accounting records.

b)  Prepare a Bank Reconciliation Statement as at 31st July 2015.   

c)  Explain  THREE  benefits to  BW  Ltd of reconciling its cash book and bank statement balances.   

4 thoughts on “Revision question on how to perform the bank reconciliation”

  1. I love looking through a post that can make people think. Also, many thanks for permitting me to comment!

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: