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FINANCIAL ACCOUNTING
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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Q2. The cash book of Ernest in December, 2020 showed a credit balance of GSH121,000, the bank statement balance showed a debit balance of GS70,600. The following errors was identified. 1. A cheque drawn amounting GHS42,000 had not been presented for payment 2. Uncredited cheque accounted for GHS36,000 3. Bank charges of GHS7,600 entered into the bank statement was omitted from the cashbook 4. The received side of the cashbook ohad been understated by GHS10,000 5. A cheque for GHS52,000 drawn by Ernest had been charged by the bank in error to another customer's account. 6. A divided of GHS3,000 paid direct into the bank had not been entered into the cashbook. 7. A dishonoured cheques amounted to GHS7,000, but no entry had been made in the books. 8. A cheque drawn for GHS6,400 had been entered in the cashbook as GHS4,600 9. A cheque for GHS4,200 drawn by another customer of the same name had been charged to Ernest's account. You are required to a. Update the cashbook b. Prepare a bank reconciliation statement for the period.
Transcribed Image Text:Q2. The cash book of Ernest in December, 2020 showed a credit balance of GSH121,000, the bank statement balance showed a debit balance of GS70,600. The following errors was identified. 1. A cheque drawn amounting GHS42,000 had not been presented for payment 2. Uncredited cheque accounted for GHS36,000 3. Bank charges of GHS7,600 entered into the bank statement was omitted from the cashbook 4. The received side of the cashbook ohad been understated by GHS10,000 5. A cheque for GHS52,000 drawn by Ernest had been charged by the bank in error to another customer's account. 6. A divided of GHS3,000 paid direct into the bank had not been entered into the cashbook. 7. A dishonoured cheques amounted to GHS7,000, but no entry had been made in the books. 8. A cheque drawn for GHS6,400 had been entered in the cashbook as GHS4,600 9. A cheque for GHS4,200 drawn by another customer of the same name had been charged to Ernest's account. You are required to a. Update the cashbook b. Prepare a bank reconciliation statement for the period.
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