Chapter 10
Cash Controls
296
Journal
Page 1
Date
account title and
explanation
Debit Credit
2016
Jun 30 Cash
5
Interest Revenue
5
Bank interest earned
______________
FIGURE 10.7
ACCOUNTS
RECEIVABLE
INCOME STATEMENT
ACCOUNTS
PAYABLE
INVENTORY
ASSETS
BALANCE SHEET
LIABILITIES
CASH
OWNER’S EQUITY
UNEARNED
REVENUE
LOANS
PAYABLE
+$5 DR
OWNER’S CAPITAL
NET INCOME (LOSS)
OPERATING EXPENSES
OPERATING INCOME (LOSS)
OTHER REVENUE
OTHER EXPENSES
(INTEREST, LOSS ON SALE OF ASSETS)
INTEREST REVENUE
+$5 CR
unrecorded Charges from the Bank statement
As with unrecorded deposits, there may be charges shown on the bank statement that are not yet
recorded in the general ledger. Typical examples are the monthly bank charges or an annual fee for
a safe deposit box. Such charges should be adjusted in the ledger.
Figure 10.8 shows that HR Clothing has a cash ledger balance of $3,500. The bank statement
reflects a balance of $3,450. All cheques are recorded in both the bank statement and the general
ledger. Upon comparison, the bookkeeper of the company notices that the bank recorded bank
charges of $50 on the last day of the month.This change must be updated in the general ledger.
general leDger
account: Cash
gl. no. 101
Date
Description
Dr Cr
Balance
Jun 1 Opening Balance
5,000 DR
Jun 2 Cheque #1
300 4,700 DR
Jun 3 Cheque #2
500 4,200 DR
Jun 10 Cheque #3
700 3,500 DR
Bank statement
June 1–June 30, 2016
Date
Description
Withdrawal Deposit Balance
Jun 1 Opening Balance
5,000
Jun 2 Cheque #1
300
4,700
Jun 3 Cheque #2
500
4,200
Jun 10 Cheque #3
700
3,500
Jun 30 Bank Charges
50
3,450
______________
FIGURE 10.8
