On 2nd April 2022 Accounting Made Easy Ltd received its monthly bank statement, which showed a bank overdraft of GH¢2,129,000.00. The balance was not in agreement with the balance shown in the company's cash book bank column. The chief cashier carried out a reconciliation which revealed the following: 1. Bank charges for the quarter ended 31 March 2018 amounting to GHC48,000.00 had been omitted from the cash book. 2. A page in the cash book of debit entries had been understated by GH¢600,000.00 and the incorrect total was carried forward to the next page. 3. A dividend cheque received for GH¢340,000.00 had been entered twice in the cash book. 4. The company's agent in Tema had paid into a local bank a sum of GHC1,550,000.00 but this was not shown on the bank statement. 5. A standing order of GHC110,000.00 to a trade association had been duly paid by the bank but there was no entry in the cash book. 6. Cheques totaling GHC4,920,000.00 had been delivered to suppliers on 30 March 2018 but none of these had as yet been presented to the bank 7. A cheque received for GH¢154,000.00 had been entered in the cash book as GHC145,000.00. 8. The bank statement revealed a credit transfer receivable for GH¢291,000.00 but after inquiries, it was discovered that this related to another company. 9. A cheque of GH¢120,000.00 being hire purchase installment payment was due on 20 January 2018. The amount was correctly entered by the company but the bank had inadvertently debited another company. 10. The bank statement recorded that a cheque for GH¢185,000.00 paid into the bank had been subsequently dishonored. The company was unaware of this. Required: (a) Prepare a corrected cash book (b) Prepare Bank Reconciliation statement as at 31 March, 2022.
On 2nd April 2022 Accounting Made Easy Ltd received its monthly bank statement, which showed a bank overdraft of GH¢2,129,000.00. The balance was not in agreement with the balance shown in the company's cash book bank column. The chief cashier carried out a reconciliation which revealed the following: 1. Bank charges for the quarter ended 31 March 2018 amounting to GHC48,000.00 had been omitted from the cash book. 2. A page in the cash book of debit entries had been understated by GH¢600,000.00 and the incorrect total was carried forward to the next page. 3. A dividend cheque received for GH¢340,000.00 had been entered twice in the cash book. 4. The company's agent in Tema had paid into a local bank a sum of GHC1,550,000.00 but this was not shown on the bank statement. 5. A standing order of GHC110,000.00 to a trade association had been duly paid by the bank but there was no entry in the cash book. 6. Cheques totaling GHC4,920,000.00 had been delivered to suppliers on 30 March 2018 but none of these had as yet been presented to the bank 7. A cheque received for GH¢154,000.00 had been entered in the cash book as GHC145,000.00. 8. The bank statement revealed a credit transfer receivable for GH¢291,000.00 but after inquiries, it was discovered that this related to another company. 9. A cheque of GH¢120,000.00 being hire purchase installment payment was due on 20 January 2018. The amount was correctly entered by the company but the bank had inadvertently debited another company. 10. The bank statement recorded that a cheque for GH¢185,000.00 paid into the bank had been subsequently dishonored. The company was unaware of this. Required: (a) Prepare a corrected cash book (b) Prepare Bank Reconciliation statement as at 31 March, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 24 April 2022 Accounting Made Easy Ltd received its monthly bank statement,
which showed a bank overdraft of GHC2,129,000.00. The balance was not in
agreement with the balance shown in the company's cash book bank column. The
chief cashier carried out a reconciliation which revealed the following:
1.
Bank charges for the quarter ended 31 March 2018 amounting to
GH¢48,000.00 had been omitted from the cash book.
A page in the cash book of debit entries had been understated by
GH¢600,000.00 and the incorrect total was carried forward to the next page.
2.
3.
A dividend cheque received for GHe340,000.00 had been entered twice in the
cash book.
The company's agent in Tema had paid into a local bank a sum of
GH¢1,550,000.00o but this was not shown on the bank statement.
4.
5.
A standing order of GHE110,000.00 to a trade association had been duly paid
by the bank but there was no entry in the cash book.
6.
Cheques totaling GH¢4,920,000.00 had been delivered to suppliers on 30
March 2018 but none of these had as yet been presented to the bank
A cheque received for GHe154,000.00 had been entered in the cash book as
7.
GH¢145,000.00.
8.
The bank statement revealed a credit transfer receivable for GHe291,000.00
but after inquiries, it was discovered that this related to another company.
A cheque of GHE120,000.00 being hire purchase installment payment was due
on 20 January 2018. The amount was correctly entered by the company but the bank
had inadvertently debited another company.
9.
10.
The bank statement recorded that a cheque for GHe185,000.00 paid into the
bank had been subsequently dishonored. The company was unaware of this.
Required:
(a) Prepare a corrected cash book
(b) Prepare Bank Reconciliation statement as at 31 March, 2022.
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