Mikael, a sole trader received his bank statement for the month of June 2019. At that, date
the bank balance was $2,366,500. His accountant investigated the matter and discovered
the following discrepancies:
1. Bank charges of $5,000 had not been entered in the cashbook
2. Cheques drawn by Mwambi totaling $21,500 had not yet been presented to the
bank.
3. He had not entered receipts of $26,300 in his cashbook.
4. The bank had not credited Mr. Mwambi with receipts of $98,500 paid into the bank
on 30 June 2019.
5. Standing order payments amounting to $61,000 had not been entered into the
cashbook,
6. In the cash book Mwambi had entered a payment’ of $73,900 as $79,440.
7. A cheque for $15,000 from a debtor had been returned by the bank marked “refer to
drawer” but had not been written back into the cashbook.
8. Mwambia had brought forward the opening cash balance of $329,250 as a debit
balance instead of a credit balance.
Required:
a) A statement showing Mikael's adjusted cash book balance as at 30 June 2019
(10marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Heres the statement showing Mikaels adj... View the full answer