The bank statement for ABC Company as of June 30,2015 indicated balance br. 9143.11. The accounting records of the Company indicate the following data: Cash balance as of June 1,201.5. \( \qquad \) Br. 3943.50 Total cash reciept for June. \( \qquad \) 28971.60 Total amount of check paid. \( \qquad \) 28388.85 Comparision of the bank statement and the accompanying canceled checks and memorandums with the records revealed the following reconciling items: 1. Cheeks outstanding, br. 5265.27 2. A deposit in transit was br: 1852.21 3. The bank had collected for the company br, 1030 on an interset-bearing note left for collection. The face of the nofe was br, 1000. 4. A cheque written for br. 139 returred with the statement had been ineorrectly charged by bonk as br. 157 , 5. A check for br. 30 had been recurded erroneously recorded as br. 240 by company, The cheek was for the payment of account payable. 6. Bank service charges for June amounted to br. 18.20 Required: Task 2.1 Prepare bank reconcilation for the month of June 2015. Task 2.2 Record the necessary journal entries.

To solve the problem, we will follow these steps: ### Task 2.1: Prepare Bank Reconciliation for June 2015 1. **Start with the Bank Statement Balance:** - Bank Statement Balance as of June 30, 2015: \( \text{Br. } 9143.11 \) 2. **Adjust for Deposits in Transit:** - Add: Deposit in Transit: \( \text{Br. } 1852.21 \) 3. **Adjust for Outstanding Checks:** - Subtract: Outstanding Checks: \( \text{Br. } 5265.27 \) 4. **Adjust for Bank Collections:** - Add: Bank Collection for Note: \( \text{Br. } 1030.00 \) 5. **Adjust for Errors in Checks:** - Add: Error in Check Charged (overcharged by bank): \( \text{Br. } 157 - 139 = \text{Br. } 18 \) - Subtract: Error in Check Recorded (under-recorded by company): \( \text{Br. } 240 - 30 = \text{Br. } 210 \) 6. **Adjust for Bank Service Charges:** - Subtract: Bank Service Charges: \( \text{Br. } 18.20 \) Now, let's calculate the adjusted bank balance step by step. ### Calculation Steps: 1. **Initial Bank Balance:** \[ \text{Bank Balance} = 9143.11 \] 2. **Add Deposit in Transit:** \[ \text{Adjusted Balance} = 9143.11 + 1852.21 = 10995.32 \] 3. **Subtract Outstanding Checks:** \[ \text{Adjusted Balance} = 10995.32 - 5265.27 = 5729.05 \] 4. **Add Bank Collection for Note:** \[ \text{Adjusted Balance} = 5729.05 + 1030.00 = 6759.05 \] 5. **Add Error in Check Charged:** \[ \text{Adjusted Balance} = 6759.05 + 18 = 6777.05 \] 6. **Subtract Error in Check Recorded:** \[ \text{Adjusted Balance} = 6777.05 - 210 = 6567.05 \] 7. **Subtract Bank Service Charges:** \[ \text{Adjusted Balance} = 6567.05 - 18.20 = 6548.85 \] ### Final Adjusted Bank Balance: \[ \text{Final Adjusted Bank Balance} = 6548.85 \] ### Task 2.2: Record the Necessary Journal Entries Now, we will record the necessary journal entries based on the reconciling items: 1. **Record Bank Service Charges:** - Debit: Bank Service Charges Expense \( \text{Br. } 18.20 \) - Credit: Cash \( \text{Br. } 18.20 \) 2. **Record Error in Check Charged:** - Debit: Cash \( \text{Br. } 18.00 \) (to correct the overcharge) - Credit: Accounts Payable \( \text{Br. } 18.00 \) 3. **Record Error in Check Recorded:** - Debit: Accounts Payable \( \text{Br. } 210.00 \) (to correct the under-recording) - Credit: Cash \( \text{Br. } 210.00 \) 4. **Record Bank Collection for Note:** - Debit: Cash \( \text{Br. } 1030.00 \) - Credit: Notes Receivable \( \text{Br. } 1030.00 \) ### Summary of Journal Entries: 1. **Bank Service Charges:** \[ \text{Debit: Bank Service Charges Expense} \quad \text{Br. } 18.20 \] \[ \text{Credit: Cash} \quad \text{Br. } 18.20 \] 2. **Error in Check Charged:** \[ \text{Debit: Cash} \quad \text{Br. } 18.00 \] \[ \text{Credit: Accounts Payable} \quad \text{Br. } 18.00 \] 3. **Error in Check Recorded:** \[ \text{Debit: Accounts Payable} \quad \text{Br. } 210.00 \] \[ \text{Credit: Cash} \quad \text{Br. } 210.00 \] 4. **Bank Collection for Note:** \[ \text{Debit: Cash} \quad \text{Br. } 1030.00 \] \[ \text{Credit: Notes Receivable} \quad \text{Br. } 1030.00 \] This completes the bank reconciliation and the necessary journal entries for ABC Company for June 2015.