The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2012 is presented to you below; CASH BOOK Bal. b/d 11,000 Total Payments 54,000 Receipts 79,000 Bal. c/d 36,000 90,000 90,000 When the bank statement of the company was received on 31st October 2012, it showed a balance of GHC 21,560 which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information. Bank charges of GH¢320 appear in the bank statement on 30th October 2012 but have not been recorded in the cash book. Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2012 were credited by the bank on 2nd November, 2012. A cheque for GH¢ 1000 entered in the cash book was yet to be submitted for payment by the payee. A cheque for GH¢12, 900 drawn by APINO Ltd. to pay for a new item of plant had been mistakenly entered in the cash book as GH¢1, The total of the receipt side of the cash book had been understated by GH¢1,000. A cheque for GH¢980 from a customer paid in on 26th October was dishonoured two days later. A cheque of GH¢ 9700 drawn by APINO Ltd. was correctly entered in the cash book but debited to the bank statement by the bank as GH¢ 7900 Traders credit totalling GH¢1630 have been credited in the bank statement on 27th October, 2012, but not yet recorded in the cash book. Amount received in the last few days of October totalling GH¢3800 and recorded in the cash book have not been included in the bank statement as at 31st October 2012 The bank had wrongly debited a cheque of GH¢270 which should have been placed against another man. Required Prepare an adjusted cash book showing the revised balance which should appear in the books APINO Ltd as at 31st October, 2012.

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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1. The

summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2012 is presented to you below;

CASH BOOK

Bal. b/d 11,000 Total Payments 54,000

Receipts 79,000 Bal. c/d 36,000

90,000 90,000

When the bank statement of the company was received on 31st October 2012, it showed a balance of GHC 21,560 which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information.

Bank charges of GH¢320 appear in the bank statement on 30th October 2012 but have not been recorded in the cash book.
Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2012 were credited by the bank on 2nd November, 2012.
A cheque for GH¢ 1000 entered in the cash book was yet to be submitted for payment by the payee.
A cheque for GH¢12, 900 drawn by APINO Ltd. to pay for a new item of plant had been mistakenly entered in the cash book as GH¢1,
The total of the receipt side of the cash book had been understated by GH¢1,000.
A cheque for GH¢980 from a customer paid in on 26th October was dishonoured two days later.
A cheque of GH¢ 9700 drawn by APINO Ltd. was correctly entered in the cash book but debited to the bank statement by the bank as GH¢ 7900
Traders credit totalling GH¢1630 have been credited in the bank statement on 27th October, 2012, but not yet recorded in the cash book.
Amount received in the last few days of October totalling GH¢3800 and recorded in the cash book have not been included in the bank statement as at 31st October 2012
The bank had wrongly debited a cheque of GH¢270 which should have been placed against another man.

Required

Prepare an adjusted cash book showing the revised balance which should appear in the books APINO Ltd as at 31st October, 2012.
Prepare the bank reconciliation statement as at 31st October 2012.

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