QUESTION 1 The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2020 is presented to you below; CASH BOOK Bal. b/d 11,000 Total Payments 54,000 Receipts 79,000 Bal. c/d 36,000 90,000 90,000 When the bank statement of the company was received on 31st October 2020, it showed a balance which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information. Bank charges of GH¢320 appear in the bank statement on 30th October 2020 but have not been recorded in the cash book. Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2020 were credited by the bank on 2nd November, 2020. A cheque for GH¢ 1,000 entered in the cash book was yet to be submitted for payment by the payee. A cheque for GH¢12, 900 drawn by APINO Ltd. To pay for a new item of plant had been mistakenly entered in the cash book as GH¢1,290. The total of the receipt side of the cash book had been understated by GH¢1,000. A cheque for GH¢980 from a customer paid in on 26th October, 2020 was dishonoured two days later. A cheque of GH¢ 9,700 drawn by APINO Ltd. was correctly entered in the cash book but debited to the bank statement by the bank as GH¢ 7,900 Traders credit totalling GH¢1,630 have been credited in the bank statement on 27th October, 2020, but not yet recorded in the cash book. Amount received in the last few days of October totalling GH¢3,800 and recorded in the cash book have not been included in the bank statement as at 31st October 2020 The bank had wrongly debited a cheque of GH¢270 which should have been placed against another man. Required Prepare an adjusted cash book showing the revised balance which should appear in the books APINO Ltd as at 31st October, 2020. Prepare the bank reconciliation statement as at 31st October 2020

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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QUESTION 1

The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2020 is presented to you below;

CASH BOOK

Bal. b/d	11,000	Total Payments	54,000
Receipts	79,000	Bal. c/d	36,000
	90,000		90,000

When the bank statement of the company was received on 31st October 2020, it showed a balance which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information.

Bank charges of GH¢320 appear in the bank statement on 30th October 2020 but have not been recorded in the cash book.

Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2020 were credited by the bank on 2nd November, 2020.

A cheque for GH¢ 1,000 entered in the cash book was yet to be submitted for payment by the payee.

A cheque for GH¢12, 900 drawn by APINO Ltd. To pay for a new item of plant had been mistakenly entered in the cash book as GH¢1,290.
The total of the receipt side of the cash book had been understated by GH¢1,000.
A cheque for GH¢980 from a customer paid in on 26^th October, 2020 was dishonoured two days later.
A cheque of GH¢ 9,700 drawn by APINO Ltd. was correctly entered in the cash book but debited to the bank statement by the bank as GH¢ 7,900
Traders credit totalling GH¢1,630 have been credited in the bank statement on 27th October, 2020, but not yet recorded in the cash book.
Amount received in the last few days of October totalling GH¢3,800 and recorded in the cash book have not been included in the bank statement as at 31st October 2020
The bank had wrongly debited a cheque of GH¢270 which should have been placed against another man.

Required

Prepare an adjusted cash book showing the revised balance which should appear in the books APINO Ltd as at 31st October, 2020.

Prepare the bank reconciliation statement as at 31st October 2020

Question 2

On 30^th September, 2019 the bank column of the cash book of Nyama Ltd showed a balance of GH¢568,400 while the bank statement showed an overdraft. An investigation conducted by the cashier revealed the following:
A cheque drawn in favour of Aki Ola Ltd for GH¢23,100 was included in the cash book receipt as GH¢231,000
As at 30^th September, 2019 the bank had not yet credited the company’s accounts with deposits totalling GH¢825,000
Cheques drawn amounting GH¢63,000 had not been presented to the bank for payment
Cheques received for GH¢330,000 was recorded as GH¢303,000 in the cash book
A cheque drawn for GH¢150,000 in favour of dream drive Ltd has been dishonoured by the bank
According to the bank statement, the bank charged a commission on turnover of GH¢22,800
A cheque for GH¢125,000 drawn by another customer had been entered to Nyama Ltd’s account in error by the bank

Required

Determine the balance at bank to be included in Nyama Ltd’s statement of financial position as at 30^th September, 2019
Prepare a reconciliation statement

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