5. On 30t September, 2012, the Cash Book of Kumipreko Enterprise showed a debit balance of GH¢1,560, 000. The Bank Statement of the business at the same date showed a credit balance of GH¢1,130,000. On comparing the Cash Book with the bank statement, the following differences were found; 2oth A cheque for GH¢720,000 had been paid into the bank on 30t September but was not credited by the bank until the following day Cheques totalling GH¢1,180,000 had been drawn but not presented to the bank for payment Bank charges of GH¢290,000 was debited against the bank statement but did not appear in the Cash Book Dividend of GH¢960,000 collected and credited by the bank on behalf of Kumipreko Enterprise did not appear in the Cash Book Payments under standing orders for an amount of GH¢500,000 had been made but did not reflect in the Cash Book A cheque for GH¢1,060,000 paid in was dishonoured, and marked Refer to Drawer. This was not captured by the Cash Book. Required: Draw up an adjusted Cash Book and Bank Reconciliation Statement

5. On 30t September, 2012, the Cash Book of Kumipreko Enterprise showed a debit balance of GH¢1,560, 000. The Bank Statement of the business at the same date showed a credit balance of GH¢1,130,000. On comparing the Cash Book with the bank statement, the following differences were found; 2oth A cheque for GH¢720,000 had been paid into the bank on 30t September but was not credited by the bank until the following day Cheques totalling GH¢1,180,000 had been drawn but not presented to the bank for payment Bank charges of GH¢290,000 was debited against the bank statement but did not appear in the Cash Book Dividend of GH¢960,000 collected and credited by the bank on behalf of Kumipreko Enterprise did not appear in the Cash Book Payments under standing orders for an amount of GH¢500,000 had been made but did not reflect in the Cash Book A cheque for GH¢1,060,000 paid in was dishonoured, and marked Refer to Drawer. This was not captured by the Cash Book. Required: Draw up an adjusted Cash Book and Bank Reconciliation Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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5. On 30" September, 2012, the Cash Book of Kumipreko Enterprise showed a debit balance of GH¢1,560, 000.
The Bank Statement of the business at the same date showed a credit balance of GH¢1,130,000. On comparing the Cash Book with the bank statement, the following differences were found;
A cheque for GH¢720,000 had been paid into the bank on 30t September but was not credited by the bank until the following day
Cheques totalling GH¢1,180,000 had been drawn but not presented to the bank for payment
Bank charges of GH¢290,000 was debited against the bank statement but did not appear in the Cash Book
Dividend of GH¢960,000 collected and credited by the bank on behalf of Kumipreko Enterprise did not appear in the Cash Book
Payments under standing orders for an amount of GH¢500,000 had been made but did not reflect in the Cash Book
A cheque for GH¢1,060,000 paid in was dishonoured, and marked Refer to Drawer. This was not captured by the Cash Book.
Required:
Draw up an adjusted Cash Book and Bank Reconciliațion Statement

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