1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.

1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The bank statement for the current account of sir George James Corp. showed a Dec. 31, 2013, balance of P585,284. Information that might be useful in preparing a bank reconciliation is as follows: a) Outstanding checks were P52,810.b) The Dec. 31, 2013, cash receipts of P23,000 were not deposited in the bank until Jan. 4, 2014.c) One check written in payment of rent P8,940 was correctly recorded by the bank but was recorded by sir George as a P9,840 disbursement.d) In accordance with prior authorization, the bank withdrew P18,000 directly from the current account as payment on a mortgage note payable. The interest portion of that payment was P14,000. Sir George has made no entry to record the automatic payment.e) Bank service charges of P740 were listed on the bank statement.f) A deposit of P35,000 was recorded by the bank on Dec. 13, but it did not belong to sir George James.g) The bank statement included a charge of P3,400 for an NSF check. Thecompany will seek payment from the…
(Bank Reconciliation and Adjusting Entries) The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2017. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined.1. There were bank service charges for June of $25.2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.50 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)3. Receipts for June 30 for $3,390 were not deposited until July 2.4. Checks outstanding on June 30 totaled $2,136.05.5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.20 on June 29.6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15.7. Check…
Activities: Prepare a bank reconciliation statement. Write your answer on a separate sheet of paper. IV. Activity 1 The bank statement of the Fast Company shows a balance of P10,000 on 31 January 2015 whereas the company's ledger shows a balance of P8,525. The following reasons have been identified for this discrepancy. 1. An amount of P822 sent to the bank for a deposit on January 31, 2015, does not appear in the bank statement. 2. The following checks issued during January have not yet been cleared by the bank. a. Check No: 201, Issue date: 15 January 2015, Amount; P200. b. Check No: 212, Issue date: 19 January 2015, Amount; P20. c. Check No: 216, Issue date: 25 January 2015, Amount; P610. 3. A note receivable amounting to P1,588 has been collected by the bank for the company. 4. The bank statement shows that interest amounting to P50 has been earned on average account balance during January. 5. The bank has charged P10 for the collection of a note. 6. A check of P100 deposited by…
The Cash book of Kofi Sam Enterprise at 30 June 2018 showed a debit balance of GH¢25,200 but his bank statement at the same date was a credit balance of GH¢41,665. A subsequent investigation showed that the following items caused the discrepancy between the cash book balance and the bank statement balance: 1. The bank had received dividends of GH¢1,250 on behalf of Kofi Sam Enterprise. 2. Unpresented cheques amounted to GH¢17,340. 3. Deposits not yet credited by the bank amounted to GH¢1,370. 4. Bank charges amounting to GH¢485 had not been recorded in the cash book. 5. A standing order of GH¢90 for insurance premium payment had been effected by the bank. 6. A cheque of GH¢4,870 issued to Adwoa was recorded as GH¢3,970. 7. A cheque of GH¢280 has been returned by the bank marked “refer to drawer.” 8. A customer of Kofi Sam Enterprise had made a direct payment of GH¢1,000 into its bank account. Required: a) Prepare an updated cash book b) Reconcile the updated cash book balance with the…
5. On 30" September, 2012, the Cash Book of Kumipreko Enterprise showed a debit balance of GH¢1,560, 000. The Bank Statement of the business at the same date showed a credit balance of GH¢1,130,000. On comparing the Cash Book with the bank statement, the following differences were found; A cheque for GH¢720,000 had been paid into the bank on 30t September but was not credited by the bank until the following day Cheques totalling GH¢1,180,000 had been drawn but not presented to the bank for payment Bank charges of GH¢290,000 was debited against the bank statement but did not appear in the Cash Book Dividend of GH¢960,000 collected and credited by the bank on behalf of Kumipreko Enterprise did not appear in the Cash Book Payments under standing orders for an amount of GH¢500,000 had been made but did not reflect in the Cash Book A cheque for GH¢1,060,000 paid in was dishonoured, and marked Refer to Drawer. This was not captured by the Cash Book. Required: Draw up an adjusted Cash Book…
An entity has prepared its bank reconciliation at 31 March 2014 taking the following information into account: $ $ Outstanding lodgements 5,000 Unpresented cheques 2,800 Bank charges included in the bank statement but not recorded in the cash book were $125. The adjusted cash book balance per the bank reconciliation was a debit balance of $1,060. What was the balance as shown on the bank statement at 31 March 2014?
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 cash book of Amofa Brothers showed a certain credit balance at 30th June 2007 while the bank statement showed a debit balance of GHC 1,162,000. On investigation, you made the following discoveries: Lodgements totalling GHC 762,000 had not been credited by the bank Cheques paid to suppliers totalling GHC 258,000 had not been presented to the bank A cheque for GHC 15,000 drawn on Amoafo Brothers had been wrongly debited by the bank Interest on Government Treasury Bills totalling GHC 52,100 were credited by the bank on 30th June; no entries were made in the cash book An issue of cheque for GHC 22,000 had been entered on the wrong side of the cash book A cheque for GHC 80,000 deposited on 20th June had been returned by the bank with the remarks “No funds available”, but no adjustment had been made in the cash book. A cheque of GHC 30,000 received from a customer had been correctly entered in the cash book but was credited by the bank as GHC 20,000 A cheque for GHC 6,600 drawn in…
Paul consulting is trying to prepare its bank reconciliation statement. for this purpose, the following data is available.1. the balances as per two books as at 30 September 2022 are as follows: bank statement balance = $28507 ( credit)cash at bank account balance =$27271( debit)2. the receipts of $ 1,092 have not been deposited.3. the given data reveals that the cheques of $2,081 were issued but not presented.4. a deposit from another customer for $450 was incorrectly credited into the bank account of paul consulting
The cash book of JAKUSI Services Ltd showed a certain credit balance at 30th June 2020 while the bank statement showed a debit balance of GHC 1,162,000. On investigation, you made the following discoveries: a. Lodgements totalling GHC 762,000 had not been credited by the bank b. Cheques paid to suppliers totalling GHC 258,000 had not been presented to the bank c. A cheque for GHC 15,000 drawn on JAKUSI Services Ltd had been wrongly debited by the bank. d. Interest on Government Treasury Bills totaling GHC 52,100 were credited by the bank on 30th June; no entries were made in the cash book. e. An issue of cheque for GHC22,000 had been entered on the wrong side of the cash book. f. A cheque for GHC 80,000 deposited on 20th June had been returned by the bank with the remarks “No funds available”, but no adjustment had been made in the cash book. g. A cheque of GHC 30,000 received from a customer had been correctly entered in the cash book but was credited by the bank as GHC 20,000. h. A…
The cash account for Samson Supplies Co. at April 30, 2014, indicated a balance of $18,885. Thebank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statementand the accompanying canceled cheques and memos with the records revealed the followingreconciling items:a) Cheques outstanding totaled $7,840b) A deposit of $3,580, representing receipts on April 30, had been made too late to appear onthe bank statement.c) The bank collected $3,780 on a note left for collection. The face of the note was $3,600.d) A cheque for $770 returned with the statement had been incorrectly recorded by SamsonSupplies Co. as $700. The cheque was for the payment of an obligation to Copelin Co. for apurchase on account.e) A cheque drawn for $330 had been erroneously charged by the bank as $3,300.f) Bank service charges for April amounted to $110.Required:a) Prepare a bank reconciliation statement for Samson Supplies Co., at April 30.b) Journalize the necessary entries. Assume that…
On 30 June 2016, the cash at bank account for Holmes Traders showed a debit balance of $13,398 and the bank statement showed a credit balance of 20,008. A comparison of the two sets of records disclosed: that there was a bank service fee of $10 the bank had collected $1000 on behalf of Holmes Traders on the maturity of a note unpresented cheques totalling $8340 that the date of a deposit of $2740 was shown by Holmes Traders as 30 June 2016, whereas the bank did not record the deposit until 1 July 2016 the bank statement shows interest received on bank account, $20 Required: 1.Prepare the bank reconciliation statement for Holmes Traders for the month ended at 30 June 2016. 2.Do you agree with the statement: “Internal control of cash is strengthened by requiring that each day’s receipts are deposited intact and that all payments are made by cheque or electronic transfer”? Discuss.