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Section 2

The document contains two examples of bank transactions involving checks submitted for collection and clearing. The first example shows journal entries for checks received and paid through clearing. The second example involves clearing results against two banks and preparing the clearing statement and related journal entries.

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23 views

Section 2

The document contains two examples of bank transactions involving checks submitted for collection and clearing. The first example shows journal entries for checks received and paid through clearing. The second example involves clearing results against two banks and preparing the clearing statement and related journal entries.

Uploaded by

com01156499073
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Section (2):

Example (1): The following arc transactions occurred in Misr bank Alex. Branch on
30-6-2005: Prepare the necessary credit and debit slips in the form of journal
entries
The checks submitted by our customers for collection were L.E. 900,000 from
which L.E. 200,000 were drawn on Misr bank Banha-branch and L.E. 300,000
on AL - Ahly bank Aswan branch (we have a branch), and the rest were drawn
on in-town local banks which they accepted them in the clearing house of that
day. The checks submitted by the representatives of othei1 in-town local
banks to Misr bank's representative in the clearing house were L.E. 350,000
and they were accepted.
Solution
(1)

Branches - Banha 200,000


Branches- Aswan 300,000
Checks under collection 400,000

Current account 900,000

(2)
Current acc. 350,000
Central Bank 50,000

Checks under collection 400,000

Ex(2)
The bank Customers submitted checks of L.E 800,000 to the bank for collection. One –
fourth of above drawn on the same bank customers, one- fourth drawn on Al-Ahly Cairo
branch (we have a branch), and the rest drawn on in town local banks they accepted them
in the clearing house of that day, except a L.E 50,000 check was refused. In the clearing
house of the same day, Misr bank’s representative: received L.E 250,000 checks from other
in town local bank .
Solution

Current account 200,000


Current account 800,000 x1/4=200,000 200,000

1
Branches- Cairo 200,000
Current account 800,000 x1/4=200,000 200,000

Checks under collection 400,000


Current account 800,000 x1/2=400,000 400,000
One entry Current account 200,000
Branch- Cairo 200,000
Checks under collection 400,000
Current account 800,000
Current account 50,000
Checks under collection 50,000
Current account 250,000
Central Bank 100,000
Checks under collection 350,000
Second: if the clearing results on 28-10-2017 are against the benefit of Cairo Bank and AL-Ahly
Bank by L.E 20,000 and 30,000 respectively, whereas their aggregate credit receipts' amounts are
L.E 60,000 & 70,000 respectively. The two banks did not have any checks drawn on each other,
but all of their checks during that day were drawn on or for Misr bank only.
Required:
1- Prepare clearing statement on 28/10/2017.
2- Prepare journal entries that should be made on 28/10/2017 for the above operations by:
Cairo bank, Misr Bank AL-Ahly Bank, Central Bank.
Solution
Clearing statement
Against Aggregate debit Bank title Aggregate credit benefits
20,000 80,000(60+20) Cairo 60,000
30,000 100,000(70+30) AL-Ahly 70,000
130,000(60+70) Misr 180,000(80+100) 50,000
310,000 = 310,000
The clearing result entry in Cairo Bank's records (collection entry):
(-)Current acc. 80,000
Central Bank 20,000
Checks under collection 60,000
The clearing result entry in AL-Ahly Bank's records (collection entry):
(-)Current acc. 100,000
Central Bank 30,000
Checks under collection 70,000
The clearing result entry in Misr Bank's records (collection entry):
(-) Current acc. 130,000
Central Bank 50,000
Checks under collection 180,000
The clearing result entry in the central bank's books:
Cairo bank(-) 20,000
AL-Ahly Bank(-) 30,000
Misr Bank(+) 50,000

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