Chapter 10
Cash Controls
304
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
950 3,750 DR
Jun 10 Cheque #3
700 3,050 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
590
4,110
Jun 10 Cheque #3
700
3,410
______________
Figure 10.20
In this situation, more was deducted from the general ledger than was on the cheque. To correct
this error, the bookkeeper will have to add to the general ledger the difference between what was
recorded and the actual amount deducted by the bank. This amounts to $360 ($950 − $590). The
bank reconciliation would appear as shown in Figure 10.21.
HR Clothing
Bank Reconciliation
June 30, 2016
Ledger
Bank
Balance as per records
$3,050
$3,410
Recording error
Add:
Error on cheque #2
360
Reconciled balance
$3,410
$3,410
______________
Figure 10.21
Because the correcting entry is in the ledger column, an adjusting entry must be recorded in the
journal. Assuming the original cheque was written to purchase inventory by using a perpetual
method, the journal entry to correct the ledger is shown in Figure 10.22.
