- 20 Marks
IA – OCT 2022 – L1 – Q4 – Bank Reconciliation
Prepare adjusted cash book, reconcile with bank statement, and state reasons for differences using given records.
Question
- The Bank Statement of Donfa Ltd for the month of July 2022 is reproduced below:
February
| Date | Particulars | Amount GH¢000 | Balance GH¢000 | |——|————-|—————|—————-| | 1 | Balance b/d | | (779,550) | | 8 | K Adusah | 18,300 | (797,850) | | 16 | Cheque | 36,600 | (761,250) | | 21 | Kakra | 31,200 | (792,450) | | 22 | Cheque | 49,950 | (742,500) | | 28 | Bongoman – trade’s credit | 8,550 | (733,950) | | 28 | Standing Order – Employers’ Association | 7,350 | (741,300) | | 28 | Bank charges| 4,200 | (745,500) |
The Cash Book for the same Company also showed the following record for the same period.
Cash Book (Bank Column only)
| Date | Particulars | Bank GH¢000 | Date | Particulars | Bank GH¢000 |
|---|---|---|---|---|---|
| Feb. | Feb. | ||||
| 16 | Abotre Ent. | 36,600 | 1 | Balance b/d | 779,550 |
| 22 | K. Abebrese | 49,950 | 4 | K. Adusah | 18,300 |
| 28 | K. Boni | 24,000 | 25 | Kakra | 31,200 |
| 28 | Balance c/d | 792,000 | 25 | Okanididi Ent. | 73,500 |
| 902,550 | 902,550 |
From the above records you are required to:
a) Prepare the adjusted cash book (5 marks)
b) Reconcile the bank statement with the Cash Book (5 marks)
c) State five reasons why the balance of the Cash Book may not be the same as the balance of the bank statement. (10 marks)
(Total: 20 marks)
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