The following is a summary from the cash book of Hozy Co. Ltd for October 20X9:

On investigation you discover that:
1. Bank charges of £35 shown on the bank statement have not been entered in the cash book.
2. A direct debit payment for £47 has been entered in error as a receipt.
3. A cheque for £18 has been returned by the bank marked ‘refer to drawer’, but it has not been written back in the cash book.
4. An error of transposition has occurred in that the opening balance in the cash book should have been carried down as £1,470.
5. Three debit card payments to suppliers for £214, £370 and £30 on the last day of the month have not yet been presented to the bank.
6. The last page of the paying-in book shows a deposit of £1,542 that has not yet been credited to the account by the bank.
7. The bank has debited £72 in error to the company’s account.
8. The bank statement shows an overdrawn balance of £124.

Required
a. Show what adjustments you would make in the cash book.
b. Prepare a bank reconciliation statement as at 31 October 20X9.

Transcribed Image Text:

Opening balance b/d Receipts Cash book £ 1,407 15,073 16,480 Payments Closing balance c/d 3 15,520 960 16,480