6 Simon's Cash Book shows a DR balance of GH¢240, his bank statement shows an overdraft of GHe100. Upon thorough investigation by Simon, the following findings were made: i. Simon had omitted standing orders totalling GH¢175 and bapk charges of GH¢7 from his cash book. i. A cheque for GH¢76 from a debtor was dishonoured iii. Simon had transferred GH¢500 from his deposit account to his current account, but the bank had performed the reverse transfer iv. Simon had brought forward a total of GH¢2,154 on the receipts side of the cash book as GH ¢1,254 Outstanding cheques, excluding those written bank, totalled GH¢750 V. vi. Uncleared lodgements totalled GH¢724 vii. In the previous month, Simon had written back old cheques totalling GH¢34 without telling the bank that these were to be cancelled. One of these cheques, for GH¢8 was presented for payment and appeared on the bank statement. Required: Show the adjustments to be made to the cash book and produce a bank reconciliation statement.
6 Simon's Cash Book shows a DR balance of GH¢240, his bank statement shows an overdraft of GHe100. Upon thorough investigation by Simon, the following findings were made: i. Simon had omitted standing orders totalling GH¢175 and bapk charges of GH¢7 from his cash book. i. A cheque for GH¢76 from a debtor was dishonoured iii. Simon had transferred GH¢500 from his deposit account to his current account, but the bank had performed the reverse transfer iv. Simon had brought forward a total of GH¢2,154 on the receipts side of the cash book as GH ¢1,254 Outstanding cheques, excluding those written bank, totalled GH¢750 V. vi. Uncleared lodgements totalled GH¢724 vii. In the previous month, Simon had written back old cheques totalling GH¢34 without telling the bank that these were to be cancelled. One of these cheques, for GH¢8 was presented for payment and appeared on the bank statement. Required: Show the adjustments to be made to the cash book and produce a bank reconciliation statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:6. Simon's Cash Book shows a DR balance of GH¢240, his bank statement shows an overdraft of
GHE100. Upon thorough investigation by Simon, the following findings were made:
i.
Simon had omitted standing orders totalling GH¢175 and bapk charges of GH¢7 from
his cash book.
i.
A cheque for GH¢76 from a debtor was dishonoured
iii.
Simon had transferred GH¢500 from his deposit account to his current account, but the
bank had performed the reverse transfer
iv.
Simon had brought forward a total of GH¢2,154 on the receipts side of the cash book
as GH ¢1,254
Outstanding cheques, excluding those written bank, totalled GH¢750
V.
vi.
Uncleared lodgements totalled GH¢724
vii.
In the previous month, Simon had written back old cheques totalling GH¢34 without
telling the bank that these were to be cancelled. One of these cheques, for GH¢8 was
presented for payment and appeared on the bank statement.
Required:
Show the adjustments to be made to the cash book and produce a bank reconciliation statement.
From the information given below relating to PWW Ltd, you are required:
a) To make such additional entries in the cash at bank account of PWW Ltd as you consider
necessary to show the correct balance at 31 October 2002.
b)
To prepare a statement reconciling the correct balance in the cash at bank account as shown in
(a) above with the balance at 31 October 2002 that is shown on the bank statement from Z Bank
Plc.
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