Nose Mask Ltd (Nose Mask) is preparing his bank reconciliation at 31st May 2019. His bank statement balance failed to agree with the cash book balance. His bank statement shows a balance of GH₵684 cash at the bank. After investigation the following were revealed; a. The following cheques have not yet been presented at the bank. These are: Cheque No. GH₵ 956784........1,875 956892........978 958452.........1,407 958541.........366 958668..........261 4,887 b. Cheque number 958602 was incorrectly recorded in Nose Mask's cash book as GH₵1,140. The cheque was correctly debited on the bank statement on 2nd May as GH₵1,005. c. Bank charges of GH₵1,149 were debited by the bank on 4th May. d. A customer's cheque for GH₵960 was returned by Nose Mask's bank in May as the customer had insufficient funds in his account. Nose Mask has not recorded the return of the cheque in his records. e. The bank has incorrectly credited Nose Mask's account with interest of GH₵660. This is interest on a deposit account held by Nose Mask personally. The bank had not corrected the error by 31st May. f. A lodgement of GH₵2,550 entered in Nose Mask's cash book on 31st May was credited on the bank statement on 3rd June. g. Cheque number 956784 was lost in the post and was cancelled. Nose Mask has not recorded the cancellation of the cheque. Required: (i) Show Nose Mask's general ledger bank account including the necessary correcting entries. (ii) Prepare a reconciliation of the bank statement balance to the corrected general ledger balance. (iii) Indicate how the bank balance will be reported in Nose Mask's final account
Nose Mask Ltd (Nose Mask) is preparing his bank reconciliation at 31st May 2019. His bank statement balance failed to agree with the
After investigation the following were revealed;
a. The following cheques have not yet been presented at the bank. These are:
Cheque No. GH₵ 956784........1,875
956892........978
958452.........1,407
958541.........366
958668..........261
4,887
b. Cheque number 958602 was incorrectly recorded in Nose Mask's cash book as GH₵1,140. The cheque was correctly debited on the bank statement on 2nd May as GH₵1,005.
c. Bank charges of GH₵1,149 were debited by the bank on 4th May.
d. A customer's cheque for GH₵960 was returned by Nose Mask's bank in May as the customer had insufficient funds in his account. Nose Mask has not recorded the return
of the cheque in his records.
e. The bank has incorrectly credited Nose Mask's account with interest of GH₵660. This
is interest on a deposit account held by Nose Mask personally. The bank had not
corrected the error by 31st May.
f. A lodgement of GH₵2,550 entered in Nose Mask's cash book on 31st May was credited
on the bank statement on 3rd June.
g. Cheque number 956784 was lost in the post and was cancelled. Nose Mask has not recorded the cancellation of the cheque.
Required:
(i) Show Nose Mask's general ledger bank account including the necessary correcting entries.
(ii) Prepare a reconciliation of the bank statement balance to the corrected general ledger balance.
(iii) Indicate how the bank balance will be reported in Nose Mask's
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