On 28th February 2023, their Cash Book of Samuel showed a credit balance of $605,000 while his Bank Statement on that same day showed a debit balance of $353,000.

An investigation into the Books revealed the following:

A cheque drawn for $32,000 had been entered in the Cash Book in error as 68

A $23,000; cheque for $21,000 drawn by Samuella had been charged to Samuel's Bank69

Account in error;

A dividend of $15,000 paid directly to the Bank had not been entered in the Cash Book;

Bank charges of $38,000 entered on the Bank Statement had not been entered in the Cash Book;

 A cheque for $35,000 paid into Bank had been dishonored and shown as such by the Bank but no entry of the dishonored had been made in the Cash Book;

A cheque for $260,000 drawn by Samuel had been charged by the Bank in error to another customer of the Bank;

The receipt side of the Cash Book had been undercast by $50,000;

Cheques totaling $180,000 entered in the Cash Book as paid to Bank had been credited by the Bank on the 4th of March 2023;

Cheques drawn amounting to $210,000 had been presented for payment at the Bank on the 5th of March 2023.

You are required to:

Write up the Adjusted Cash Book; and Bank Reconciliation Statement as of 28th February 2023.

Answer rating: 100% (QA)

Adjusted Cash Book as of 28th February 2023 Date 2023 Feb 1 2023 Feb 5 2023 Feb 28 2023 Mar 4 2023 F... View the full answer