- 8 Marks
FA – L1 – Q66 – Bank reconciliations
Prepare an adjusted cash book for Mama Clara as at 31st December 20X9 based on bank statement and cash book discrepancies.
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.
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