The bank balance of John did not agree with the cash book balance of $2,555,000 as at
Question:
The bank balance of John did not agree with the cash book balance of $2,555,000 as at 30 September 2018. On comparing the bank statement and the cash
book he found the following differences
1. The unpresented cheques amounted $154,000
2. Cheques amounting to $278,000 banked on 29 September 2018 were not
credited by the bank until 3 October 2018
3. Bank charges amounting to $34,000 has been debited in the bank account
4. Interest of $21,000 on fixed deposit has been credited to the account by the
bank
5. A debtor had paid $275,000 direct to the bank and the amount has been
credited by the bank
6. A cheque of $45,000 deposited on 26 September 2018 was returned as unpaid
but has not been received in the office
7. Standing orders amounting to $85,000 have been paid by the bank
8. A cheque of $64,000 has been posted in the cash book as $45,000
Required:
i. Adjust cash book (3 marks)
ii. Bank reconciliation statement as at 30 September 2018 (2 marks)
Expert Answer:
The detailed answer for the above question is provided below i Adjusting the Cash Book Add the unpresented cheques amount of 154000 to the cash book b... View the full answer
