Question

In: Accounting

The following information is available after the Cash Book of T Stores was compared with their...

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.      

Solutions

Expert Solution

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

ekkarill92 answered 2 years ago
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