The bank statement oT the Fast Company snows a balance of GHCT0,000 January 2019 whereas the company's cash book shows a balance of GHC8 following reasons have been identified for this discrepancy. 1) An amount of GHC822 sent to the bank for deposit on January 31, : not appear in the bank statement. 2) The following checks issued during the month of January have not cleared by the bank. Check No: 201, Issue date: 15 January 2015, Amount; GHC200; Check No: 212, Issue date: 19 January 2015, Amount; GHC20; Check No: 216, Issue date: 25 January 2015, Amount; GHC610; 3) A note receivable amounting to GHC1, 588 has been collected by b company. 4) The bank statement shows that interest amounting to GHC50 has b on average account balance during January. 5) The bank has charged GHC10 for the collection of a note. 6) A check of GHC100 deposited by the company has been charged ba 7) An amount of GHC25 has been deducted by bank as service charge month of January.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
a) Prepare an adjusted cash book for the month b) Prepare a bank reconciliation statement. c) Given your knowledge in bank reconciliation statement, do you think digital banking products like SMS alert and e-statements have rendered the use of bank reconciliation statement irrelevant? Discuss
The bank statement of the Fast Company shows a balance of GHC10,000 on 31
January 2019 whereas the company's cash book shows a balance of GHC8,525. The
following reasons have been identified for this discrepancy.
1) An amount of GHC822 sent to the bank for deposit on January 31, 2019 does
not appear in the bank statement.
2) The following checks issued during the month of January have not yet been
cleared by the bank.
Check No: 201, Issue date: 15 January 2015, Amount; GHC200;
Check No: 212, Issue date: 19 January 2015, Amount; GHC20;
Check No: 216, Issue date: 25 January 2015, Amount; GHC610;
3) A note receivable amounting to GHC1, 588 has been collected by bank for the
company.
4) The bank statement shows that interest amounting to GHC50 has been earned
on average account balance during January.
5) The bank has charged GHC10 for the collection of a note.
6) A check of GHC100 deposited by the company has been charged back as NSF.
7) An amount of GHC25 has been deducted by bank as service charges for the
month of January.
8) The check no. 220 is issued to Electricity Company. The check is in the amount
of GHC95 but is erroneously recorded in the cash payments journal as GHC59.
Transcribed Image Text:The bank statement of the Fast Company shows a balance of GHC10,000 on 31 January 2019 whereas the company's cash book shows a balance of GHC8,525. The following reasons have been identified for this discrepancy. 1) An amount of GHC822 sent to the bank for deposit on January 31, 2019 does not appear in the bank statement. 2) The following checks issued during the month of January have not yet been cleared by the bank. Check No: 201, Issue date: 15 January 2015, Amount; GHC200; Check No: 212, Issue date: 19 January 2015, Amount; GHC20; Check No: 216, Issue date: 25 January 2015, Amount; GHC610; 3) A note receivable amounting to GHC1, 588 has been collected by bank for the company. 4) The bank statement shows that interest amounting to GHC50 has been earned on average account balance during January. 5) The bank has charged GHC10 for the collection of a note. 6) A check of GHC100 deposited by the company has been charged back as NSF. 7) An amount of GHC25 has been deducted by bank as service charges for the month of January. 8) The check no. 220 is issued to Electricity Company. The check is in the amount of GHC95 but is erroneously recorded in the cash payments journal as GHC59.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education