The following is a summary of the cash book of High Ltd for March 2020: GH¢ GH¢ Opening balance b/d 4,120 Payments 46,560 Receipts 45,320 Closing balance c/d 2880 49,440 49,440 On the investigation you discover that at 31 March 2020: The last page of the paying-in books a deposit of GH¢1,904 which has not yet been credited by the bank. Two cheques paid to suppliers for GH¢642 and GH¢1,200 have not yet been presented to the bank. Dividends received of the GH189 are shown on the bank statement but not entered in the cash book. Bank charges of GH¢105 shown on the bank statement have not been entered in the cash book. A cheque for GH¢54 has been returned by the bank marked ‘refer to drawer’ but it has not been written back in the cash book. A cheque drawn for GH¢141 has been entered in error as a receipt in the cash book. The bank has debited a cheque for GH¢216 error to the company’s account. You are required to: Show the adjustments that should be made in the cash book. Prepare a bank reconciliation statement at 31 March 2020.
The following is a summary of the cash book of High Ltd for March 2020: GH¢ GH¢ Opening balance b/d 4,120 Payments 46,560 Receipts 45,320 Closing balance c/d 2880 49,440 49,440 On the investigation you discover that at 31 March 2020: The last page of the paying-in books a deposit of GH¢1,904 which has not yet been credited by the bank. Two cheques paid to suppliers for GH¢642 and GH¢1,200 have not yet been presented to the bank. Dividends received of the GH189 are shown on the bank statement but not entered in the cash book. Bank charges of GH¢105 shown on the bank statement have not been entered in the cash book. A cheque for GH¢54 has been returned by the bank marked ‘refer to drawer’ but it has not been written back in the cash book. A cheque drawn for GH¢141 has been entered in error as a receipt in the cash book. The bank has debited a cheque for GH¢216 error to the company’s account. You are required to: Show the adjustments that should be made in the cash book. Prepare a bank reconciliation statement at 31 March 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following is a summary of the
|
|
GH¢ |
|
GH¢ |
|
Opening balance b/d |
4,120 |
Payments |
46,560 |
|
Receipts |
45,320 |
Closing balance c/d |
2880 |
|
|
49,440 |
|
49,440 |
On the investigation you discover that at 31 March 2020:
- The last page of the paying-in books a deposit of GH¢1,904 which has not yet been credited by the bank.
- Two cheques paid to suppliers for GH¢642 and GH¢1,200 have not yet been presented to the bank.
- Dividends received of the GH189 are shown on the bank statement but not entered in the cash book.
- Bank charges of GH¢105 shown on the bank statement have not been entered in the cash book.
- A cheque for GH¢54 has been returned by the bank marked ‘refer to drawer’ but it has not been written back in the cash book.
- A cheque drawn for GH¢141 has been entered in error as a receipt in the cash book.
- The bank has debited a cheque for GH¢216 error to the company’s account.
You are required to:
- Show the adjustments that should be made in the cash book.
- Prepare a
bank reconciliation statement at 31 March 2020.
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