The cash book column of Wekesa showed a credit balance of Sh.1,040,350 while the bank statement balance showed an overdraft of Sh.1,398,000 on 31st July 2019. A detailed comparison of entries revealed the following; Cheques paid to the following creditors were not presented for payment at the bank; Mumbi Sh.195,400, Yash Sh.32,500, Sidhu Sh.164,300 On 31st July 2019, the sales made were Sh.1,053,700 and were deposited in the evening. However, the sales were not recorded by the bank until the following day. iii) i) ii) The bank paid an insurance premium of Sh.75,300 because of a standing order arranged by Wekesa The bank deducted Sh.45,550 bank charges which were not yet recorded in the iv) cash book v) Interest received on a fixed deposit Sh.160,000 had not yet been recorded by the business. vi) The bank had received on behalf of Wekesa, a credit transfers of Sh.246,700 from Obiri A cheque for Sh.135,500 which was paid by the bank was entered in the cash| book as Sh.153,500 vii) Required: a) Adjusted cash book b) Bank reconciliation statement as at 31 t July 2019

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question two
The cash book column of Wekesa showed a credit balance of Sh.1,040,350 while the
bank statement balance showed an overdraft of Sh.1,398,000 on 31st July 2019. A
detailed comparison of entries revealed the following,
Cheques paid to the following creditors were not presented for payment at the
bank; Mumbi Sh.195,400, Yash Sh.32,500, Sidhu Sh.164,300
On 31t July 2019, the sales made were Sh1,053,700 and were deposited in the
evening. However, the sales were not recorded by the bank until the following
day.
The bank paid an insurance premium of Sh.75,300 because of a standing order
arranged by Wekesa
The bank deducted Sh.45,550 bank charges which were not yet recorded in the
i)
i)
iii)
iv)
cash book
v)
Interest received on a fixed deposit Sh. 160,000 had not yet been recorded by
the business.
vi)
The bank had received on behalf of Wekesa, a credit transfers of Sh.246,700
from Obiri
A cheque for Sh.135,500 which was paid by the bank was entered in the cash||
book as Sh.153,500
vii)
Required:
a) Adjusted cash book
b) Bank reconciliation statement as at 31t July 2019
Transcribed Image Text:Question two The cash book column of Wekesa showed a credit balance of Sh.1,040,350 while the bank statement balance showed an overdraft of Sh.1,398,000 on 31st July 2019. A detailed comparison of entries revealed the following, Cheques paid to the following creditors were not presented for payment at the bank; Mumbi Sh.195,400, Yash Sh.32,500, Sidhu Sh.164,300 On 31t July 2019, the sales made were Sh1,053,700 and were deposited in the evening. However, the sales were not recorded by the bank until the following day. The bank paid an insurance premium of Sh.75,300 because of a standing order arranged by Wekesa The bank deducted Sh.45,550 bank charges which were not yet recorded in the i) i) iii) iv) cash book v) Interest received on a fixed deposit Sh. 160,000 had not yet been recorded by the business. vi) The bank had received on behalf of Wekesa, a credit transfers of Sh.246,700 from Obiri A cheque for Sh.135,500 which was paid by the bank was entered in the cash|| book as Sh.153,500 vii) Required: a) Adjusted cash book b) Bank reconciliation statement as at 31t July 2019
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