In the draft accounts for the year ended 31 October 2019 of Thomas P Lee, garage proprietor, the balancEat bank according to the cash book was TZS 894.68 in hand.Subsequently the following discoveries were made:1) Chegue number 176276 dated 3 September 2019 for TZS 310.84 in favour of GLowe Limited hasbeen correctly recorded in the bank statement, but included in the cash book payments as TZS301.84.2) Bank commission charged of TZS 169.56 and bank interest charged of T2S 109.10 have beenentered in the bank statement on 23 October 2019, but not included in the cash book.3) The recently received bank statement shows that a cheque for TZS 29.31 received from TAndrewsand credited in the bank statements on 9 October 20X9 has now been dishonored and debited inthe bank statement on 26 October 2019. The only entry in the cash book for this chegue recordsits receipt on 8 October 20X9.4) Cheque number 177145 for TZS 15.10 has been recorded twice as a credit in the cash book5) Amounts received in the last few days of October 2019 totaling TZS 1,895.60 and recorded in thecash book have not been included in the bank statements until 2 November 2019.6) Cheques paid according to the cash book during October 2019 and totaling TZs 395.80 were notpresented for payment to the bank until November 2019.7) Traders' credits totaling TZS 210.10 have been credited in the bank statement on 26 October20X9, but not yet recorded in the cash book.8) A standing order payment of TZS 15.00 on 17 October 2019 to Countryside Publications has beenrecorded in the bank statement but is not mentioned in the cash book.Required:a) Prepare a computation of the balance at bank to be includedThomas P Lee's balancesheet as at 31 October 2019.b) Prepare a bank reconciliation statement as at 31 October 20X9 for Thomas P Lee.

Balance at bank refers to the amount which a firm or person has in the bank. A firm deposits cash in…

TZS 169.56 and bank interest charged of T25 109.10 have on 23 October 2019, but not included in the cash book rement shows that a cheque for TZS 29.31 received from TAn nents on 9 October 20X9 has now been dishonored and deb ober 2019. The only entry in the cash book for this cheque re 5 15.10 has been recorded twire as

TZS 169.56 and bank interest charged of T25 109.10 have on 23 October 2019, but not included in the cash book rement shows that a cheque for TZS 29.31 received from TAn nents on 9 October 20X9 has now been dishonored and deb ober 2019. The only entry in the cash book for this cheque re 5 15.10 has been recorded twire as

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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he following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019: a. M&N Windows Ltd’ cash at bank ledger at 30 June 2019 is: $75,864 b. Credit balance as per bank statement as at 30 June 2019 is: $101,160 c. Bank statement shows an electronic transfer from a customer of $3,864 d. Deposits in transit, $12,540 e. Interest earned on bank account, $75 f. Unpresented cheques, $37,407 g. Service charge included in bank statement, $150 h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910 i. A dishonoured cheque written by a client Jim Smith, $3,900 The entity doesn’t use special journals for record keeping. The entity prepares bank reconciliation statement at the end of each month. Required: a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019. b) Discuss why a bank reconciliation is still necessary…
In the draft accounts for the year ended 31st August, 2020 of Azay Ltd, the balance at the bank according to the cash book was a credit balance of GH¢894,680. Subsequently, the following discoveries were made: a. Bank commission charged of GH¢169,560 and bank interest charged of GH¢109,100 have been entered in the bank statement on 23 August, 2020 but not included in the cash book b. Cheque for GH¢17,500 has been recorded twice as a credit in the cash book. c. Traders’ credits totalling GH¢210,000 have been credited in the bank statement on 26 August, 2020but not yet recorded in the cash book. d. A cheque payment of GH¢145,000 has been recorded in the cash book as a receipt. e. Cheque dated 3 July, 2020 for GH¢310,840 in favour of Akos Ltd has been correctly recorded in the bank statement, but included in the cash book payments as GH¢310,840. f. Cheques paid according to the cash book during August 2020 and totaling GH¢400,500 were not…
The following information has been extracted from the accounting records a bank statement of ABCJM Ltd as at 31 January 2019: Closing Balance shown on the Bank Statement Cash Receipts of 31 January which deposited on 30 January did not appear on the bank statement Cheques recorded in the cash payments but not yet presented For payment to the Bank Prepare a bank reconciliation statement as at 31 January. $11 450 CR 5,500 3 550
In the draft accounts for the year ended 31 October 20X9 of Thomas P Lee, garage proprietor, the balance at bank according to the cash book was £894.68 in hand. Subsequently, the following discoveries were made i) Cheque number 176276 dated 3 September 20X9 for £310.84 in favour of G Lowe Limited has been correctly recorded in the bank statement but included in the cash book payments as £301.84. ii) Bank commission charged of £169.56 and bank interest charged of £109.10 have been entered in the bank statement on 23 October 20X9, but not included in the cash book. m) The recently received bank statement shows that a cheque for £29.31 received from T Andrews and credited in the bank statements on 9 October 20X9 has now been dishonoured and debited in the bank statement on 26 October 20X9. The only entry in the cash book for this cheque records its receipt on 8 October 20X9. iv) Cheque number 177145 for £15.10 has been recorded twice as a credit in the cash book. v) Amounts received in…
On August 31, 2024, Cullumber Company had a cash balance per its books of $26,480. The bank statement on that date showed a balance of $17,260. A comparison of the bank statement with the Cash account revealed the following. 1. 2. 3. 4. 5. 6. (a) The August 31 deposit of $17,150 was not included on the August bank statement. The bank statement shows that Cullumber received EFT deposits from customers on account totalling $2,230 in August. Cullumber has not recorded any of these amounts. Cheque # 673 for $1,470 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,340, and #712 for $2,650. The bank statement showed on August 29 an NSF charge of $688 for a cheque issued by R. King, a customer, in payment of their account. This amount included an $9 service charge by Cullumber's bank. The company's policy is to pass on all NSF service charges to the customer. Bank…
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