S pard account. 4. Cheques from debtors for Sh. 43,275 deposited by Johnson on 29th March were returned unpaid but no entry had been made in the cash book to record the return. 5. Cheques totaling Sh. 149,088 deposited by Johnson on 30th March were credited by the bank on 2nd April, 2011. 6. Cheques totaling Sh. 134,402 issued by Johnson to his creditors did not appear on the bank statement. One of these cheques for Sh. 6,420 is dated 3rd September 2010. 7. A cheque for Sh. 8,240 issued by Peter another customer at the bank was credited on 1st April. 8. The cashier in totaling the cash book pages overstated the debit balance of the cash book by Sh. 20,000. Lequired: (a) Updated cash book or adjustment of the cash book balance. (b) A bank reconciliation statement as at 31st March 20X7.

S pard account. 4. Cheques from debtors for Sh. 43,275 deposited by Johnson on 29th March were returned unpaid but no entry had been made in the cash book to record the return. 5. Cheques totaling Sh. 149,088 deposited by Johnson on 30th March were credited by the bank on 2nd April, 2011. 6. Cheques totaling Sh. 134,402 issued by Johnson to his creditors did not appear on the bank statement. One of these cheques for Sh. 6,420 is dated 3rd September 2010. 7. A cheque for Sh. 8,240 issued by Peter another customer at the bank was credited on 1st April. 8. The cashier in totaling the cash book pages overstated the debit balance of the cash book by Sh. 20,000. Lequired: (a) Updated cash book or adjustment of the cash book balance. (b) A bank reconciliation statement as at 31st March 20X7.

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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From the following particulars of Mr.Archer, prepare bank reconciliation statement as on March 31, 2017. 1. Bank balance as per cash book $ 50,000. 2. Cheques issued but not presented for payment $ 6,000. 3. The bank had directly collected dividend of $ 8,000 and credited to bank account but was not entered in the cash book. 4. Bank charges of $ 400 were not entered in the cash book. 5. A cheques for $ 6,000 was deposited but not collected by the bank.
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