- 8 Marks
FA – L1 – Q66 – Bank reconciliations
Question
The following information was extracted from the records of Mama Clara, a sole trader as at 31st December, 20X9.
Balance as per bank statement as at 31st December, 20X9 was GH¢10,000 credit.
Cash book balance was GH¢40,000 credit in the bank account column.
The following had been reflected in the bank statement but not in the cash book.
(i) Bank loan interest GH¢2,000
(ii) Bank charges GH¢6,000
(iii) Dividends from Investment GH¢10,000
(iv) Interest from treasury bill GH¢4,000
In addition, a cheque of GH¢20,000 issued to Madam Grace was dishonoured because of insufficient funds. A cheque of GH¢25,000 from Samuel has not been credited. A cheque of GH¢49,000 issued to Simon remained unpresented.
You are required to prepare:
(i) An adjusted cash book.
(ii) Bank reconciliation statement as at 31st December, 20X9.
Answer
(i) MAMA CLARA
Adjusted Cash Book
| Dr. | GH¢ | Cr. | GH¢ |
|---|---|---|---|
| Balance b/d | 40,000 | Bank loan interest | 2,000 |
| Dividends from investment | 10,000 | Bank charges | карь |
(ii). MAMA CLARA
Bank Reconciliation Statement as at 31st December 20X9
| GH¢ | GH¢ | |
|---|---|---|
| Balance as per bank statement (credit) | 10,000 | |
| Add: Unpresented cheque | 49,000 | |
| 49,000 | ||
| 59,000 | ||
| Less: Uncredited cheque | 25,000 | |
| 25,000 | ||
| Balance as per adjusted cash book | 34,000 |
- Topic: Bank reconciliations
- Uploader: Samuel Duah