In: Accounting
The following information is available after the Cash
Book of T Stores was compared with their Bank Statement at 28
February 2018.
Information
1. The Cash Book showed an overdraft of GHS10,100.
2. The Bank Statement showed a debit balance of GHS10,568.
3. The deposit of GHS7,654 does not appear on the Bank
Statement.
4. Cheques not yet presented for payment:
Nr. 511 GHS805
Nr. 516 GHS690
5. The bank recorded the following in the current bank account of T
Stores:
Credit card levy GHS150
Service fee GHS243
Interest on overdraft GHS163
6. A cheque for GHS260 received from P. Peters was dishonoured by
the bank. Discount allowed on this cheque was GHS30.
7. A payment by a debtor, D. Sunshine, for GHS3,000 appears in the
Bank Statement and not in the Cash Book.
8. The Bank Statement showed a debit order for GHS693 in favour of
Deadsure for an insurance premium.
9. T. Strong, a tenant, deposited his monthly rent directly into
the bank account, GHS4,200.
You are required to:
(i) Make supplementary entries in Cash Book of T
Stores on 28 February 2018.
(ii) Draw up the Bank Reconciliation Statement on 28
February 2018.
1 | Requirement | |||||||
Supplementary Entries in the cash book of T Stores | ||||||||
as on 28th Feb 2018 | ||||||||
Doc | Day | Details | Bank | Doc | Day | Details | Bank | |
B/S | 28 | D.Sunshine | GH$3000 | 28 | Balance | GH$10100 | ||
c/d | ||||||||
B/S | Rent Income | GH$4200 | B/S | Bank Charges | GH$393 | |||
(GH$150+GH$243) | ||||||||
B/S | Balance C/D | GH$4409 | ||||||
B/S | Interest on Overdraft | GH$163 | ||||||
B/S | Insurance | GH$693 | ||||||
B/S | P.Peter (R/D) | GH$260 | ||||||
GH$11609 | GH$11609 | |||||||
2 | Requirement | |||||||
Bank Reconciliation Statement as at 28th February 2018 | ||||||||
Credit Balance according to cash book | GH$4409 | |||||||
Less | Unpresented Cheques | |||||||
No 511 | GH$805 | |||||||
No 516 | GH$690 | |||||||
GH$1495 | ||||||||
GH$2914 | ||||||||
Add Oustanding Deposit | GH$7654 | |||||||
Debit Balance According to Bank Statement | GH$10568 | |||||||