1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.
1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. The cash book of Adomako Enterprise showed a credit
balance of GHS 138,150 whereas the Bank statement
showed a debit balance of GHS 229,710 on August 31,
2014. Subsequently, the following discoveries were made:
• Bank charges of GHS 8,700 had not been entered in the
cash book.
• Adomako enterprise had entered a receipt of GHS
27,840.
• Cheques drawn for payment to creditors totaling GHS
109,000 had not been presented for payment.
• Customers owing GHS 114,000 had paid directly to the
bank but Adomako Enterprise was not informed.
• Cheques lodgements of GHS 232,810 had not been
entered by the bank.
• The bank had carried out an order to pay an insurance
premium of GHS 50,000 on behalf of Adomako
Enterprise.
• A cheque for GHS 23,400 received from a customer
and paid into the bank has been dishonoured but not
entered in the cash book.
• The bank had entered a withdrawal of GHS 59,000 as
GHS 69,500.
• An investment interest of GHS 29,000 has been
credited to Adomako Enterprise account by the bank.
You are required to prepare:
a) Adjusted Cash Book;
b) Bank Reconciliation Statement at September 1,
2014.
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