Required: (cashbook and bank statement attatched as images) (i)Calculate the balance as per the cash book (ii)Calculate the balances on the bank statement (iii)Prepare Adjusted cash book as at 31 December 2019 (iv) Prepare a Bank reconciliation statement. (b) Explain contra entry from purchases ledger to sales ledger (c)After the profit and loss account for Jebby Ltd had been prepared, it was found that prepaid expenses of Shs. 60,000 had been omitted and that closing stock had been overvalued by Shs.40,500. Explain the effect of these errors on the financial statements.
Required: (cashbook and bank statement attatched as images)
(i)Calculate the balance as per the
![(a)
The cash book bank column of Leah for the month December 2019 is as follows:
Date
Details
Cheque.
No
018
Amount
Date
Cheque
No.
Details
Amount
(Shs.)
98,000
75,000
50,000
48,000
(Shs.)
70,000
64,000
28,000
19,000
13,000
2/12
Jacob
1/12
Balance b/f
651
652
10/12
119
Sally
Queen
5/12
Joseph
Isaac
18/12
125
12/12
653
654
22/12
173
James
20/12
Robert
20/12
Mary
The bank provided the following bank statement as at 31/12/19
Date
Cheque Details
Debit
Credit
Balance
no.
1/12
Balance b/f
70,000
(70,000)
2/12
018
98,000
?
5/12
651
119
64,000
10/12
75,000
11/12
12/12
Ledger fees
6,600
28,000
652
18/12
Dividends
15,300
19/12
АВC td
5,800
8,200
22/12
31/12
CIC Itd
Balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd822dbd7-5713-40c7-9b09-91fbb7d7ad4a%2F75ffb43c-3405-41d3-970a-cdf1afdc503c%2Fc42g59b_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)