2. The following information was provided by Magagi & Sons on the 31st of July, 2020:...

  

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2. The following information was provided by Magagi & Sons on the 31st of July, 2020: CASHBOOK Dr Jul-01 Balance bid 70,000 Jul-07 Gambo Usman 10,000 Jul-22 Chika Ebo July 25 Chibuzo Jul-31 Kanayo Uche Jul-31 Judith Oke Date Particulars 3,000 3,000 2,000 92,000 Cr Jul-08 Galadina 5,000 Jai-13 Obien N Jul-26 Obasanje Jul-29 Balanor cid 82,000 1-Jul Balance bid 6-Jul Cheque 9-Jul Galadima 15-Jul Obiora 22-Jul Choque 25-Jul Standing order (payment to BJ Ltd 92,000 BANK STATEMENT Ref Dr Cr N 5.000 1,000 2.000 Balance N 70,000 10,000 80,000 75,000 74,000 4,000 78,000 76,000 Date Particulars 1-Jul Balance b'd 6-Jul Cheque 9-Jul Galadima BANK STATEMENT Ref Dr Cr N N 15-Jul Obiora 22-Jul Cheque 25-Jul Standing order (payment to BJ Lady 27-Jul Dividend from PZ Ltd 27-Jul COT 31-Jul Bank charges 5.000 1,000 2,000 1000 3,000 70,000 80,000 75,000 74,000 78,000 76,000 4,000 80,000 79,000 76,000 10,000 Balance N 4,000 It was also discovered that a cheque from Chibuzo amounting to N3,000 was dishonored by the bank. Required: a. Update the cash book, and state the new balance as on 31 July (5 marks) 2020 b. Draw up a bank reconciliation statement as on 31 July 2020 (3 marks) c. State four advantages of the statement which you (2 marks) prepared 2. The following information was provided by Magagi & Sons on the 31st of July, 2020: CASHBOOK Dr Jul-01 Balance bid 70,000 Jul-07 Gambo Usman 10,000 Jul-22 Chika Ebo July 25 Chibuzo Jul-31 Kanayo Uche Jul-31 Judith Oke Date Particulars 3,000 3,000 2,000 92,000 Cr Jul-08 Galadina 5,000 Jai-13 Obien N Jul-26 Obasanje Jul-29 Balanor cid 82,000 1-Jul Balance bid 6-Jul Cheque 9-Jul Galadima 15-Jul Obiora 22-Jul Choque 25-Jul Standing order (payment to BJ Ltd 92,000 BANK STATEMENT Ref Dr Cr N 5.000 1,000 2.000 Balance N 70,000 10,000 80,000 75,000 74,000 4,000 78,000 76,000 Date Particulars 1-Jul Balance b'd 6-Jul Cheque 9-Jul Galadima BANK STATEMENT Ref Dr Cr N N 15-Jul Obiora 22-Jul Cheque 25-Jul Standing order (payment to BJ Lady 27-Jul Dividend from PZ Ltd 27-Jul COT 31-Jul Bank charges 5.000 1,000 2,000 1000 3,000 70,000 80,000 75,000 74,000 78,000 76,000 4,000 80,000 79,000 76,000 10,000 Balance N 4,000 It was also discovered that a cheque from Chibuzo amounting to N3,000 was dishonored by the bank. Required: a. Update the cash book, and state the new balance as on 31 July (5 marks) 2020 b. Draw up a bank reconciliation statement as on 31 July 2020 (3 marks) c. State four advantages of the statement which you (2 marks) prepared

Answer rating: 100% (QA)

SOLUTION a Updating the cash book and stating the new balance as of 31 July 2020 CASHBOOK Dr N Jul01 ... View the full answer