Pembeni Stores cash book at the end of April 2023 had a debit balance brought down...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pembeni Stores cash book at the end of April 2023 had a debit balance brought down of Ksh 196,700 while the bank statement as at the end of the same month had a credit balance of Ksh 121,310. The following unrecorded information was available after comparing the Cash Book with the Bank Statement for the period 1" to 30 April 2023. (i) The bank statement had a debit of Ksh 3,500 as service charge for maintaining the account. (ii) On April 28 the bank statement shows a bounced cheque of Ksh 85,500 plus the related bank charges of Ksh 1,800. (iii) The bank statement shows that Ksh 800 was credited to the account on April 30 for interest earned by Pembeni Stores during the month of April (iv) The bank statement shows that a cheque deposit of Ksh 108,500 reflected in Pembeni's bank account on April 29. However, on further investigation, it was established that the cheque was an erroneous credit belonging to a different entity. The error was subsequently corrected by the bank on 2 May. (v) During the month of April, Pembeni Stores wrote cheques totaling more than Ksh 500,000. As of April 30 Ksh 30,210 of the cheques written in April had not yet. cleared in the bank and Ksh 20,000 of cheques written in March had not yet cleared in the bank. (vi) Ksh 90,000 of cash received by Pembeni Stores on 30 April had been recorded in the cash book. However, this cash was deposited in the bank on the morning of t 1st May, (vii) On April 29 Pembeni's cash book shows cash sales of Ksh 14,500 were receipted and banked on the same day. The bank statement shows the amount deposited was actually Ksh 15,400. Upon reviewing the transaction, it was confirmed that Ksh 15,400 was the correct amount. (viii) Pembeni settles Ksh 55,000 shop rent via a standing order payment automatically scheduled for 28th of every month. This transaction had not been entered in the cash book but had already been debited in the bank statement. Required: (1) (ii) Prepare Pembeni Stores adjusted cashbook as at 30 April 2023 Prepare the bank reconciliation statement as at 30th April 2023 (10 marks) (5 marks) Total: 15 Marks Pembeni Stores cash book at the end of April 2023 had a debit balance brought down of Ksh 196,700 while the bank statement as at the end of the same month had a credit balance of Ksh 121,310. The following unrecorded information was available after comparing the Cash Book with the Bank Statement for the period 1" to 30 April 2023. (i) The bank statement had a debit of Ksh 3,500 as service charge for maintaining the account. (ii) On April 28 the bank statement shows a bounced cheque of Ksh 85,500 plus the related bank charges of Ksh 1,800. (iii) The bank statement shows that Ksh 800 was credited to the account on April 30 for interest earned by Pembeni Stores during the month of April (iv) The bank statement shows that a cheque deposit of Ksh 108,500 reflected in Pembeni's bank account on April 29. However, on further investigation, it was established that the cheque was an erroneous credit belonging to a different entity. The error was subsequently corrected by the bank on 2 May. (v) During the month of April, Pembeni Stores wrote cheques totaling more than Ksh 500,000. As of April 30 Ksh 30,210 of the cheques written in April had not yet. cleared in the bank and Ksh 20,000 of cheques written in March had not yet cleared in the bank. (vi) Ksh 90,000 of cash received by Pembeni Stores on 30 April had been recorded in the cash book. However, this cash was deposited in the bank on the morning of t 1st May, (vii) On April 29 Pembeni's cash book shows cash sales of Ksh 14,500 were receipted and banked on the same day. The bank statement shows the amount deposited was actually Ksh 15,400. Upon reviewing the transaction, it was confirmed that Ksh 15,400 was the correct amount. (viii) Pembeni settles Ksh 55,000 shop rent via a standing order payment automatically scheduled for 28th of every month. This transaction had not been entered in the cash book but had already been debited in the bank statement. Required: (1) (ii) Prepare Pembeni Stores adjusted cashbook as at 30 April 2023 Prepare the bank reconciliation statement as at 30th April 2023 (10 marks) (5 marks) Total: 15 Marks
Expert Answer:
Answer rating: 100% (QA)
Pembeni Stores Adjusted Cash Book as at 30 April 2023 Bounced Cheque Charges ii Bank Deduction Ksh 87300 Adjusted Cash Book Balance 196700 87300 Ksh 1... View the full answer
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Posted Date:
Students also viewed these accounting questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Write a literature review for your study. See below for an example of a literature review. Your literature review should provide both analysis and synthesis of previous studies as related to the...
-
Drag the labels onto the diagram to identify the cell types and matrix components of areolar connective tissue, a model connective tissue. Neutrophil Collagen fiber Lymphocyte Ground substance...
-
Horne executed a $100,000 note in favor of R. C. Clark. On the back of the instrument was a restriction stating that the note could not be transferred, pledged, or otherwise assigned without Hornes...
-
Use implicit differentiation to find dy/dx. sin xy = x + y
-
In 2014, Barker contacted Price about a van Price had advertised for sale. The advertisement described the van as a 1994 Ford E350. Barker and Price agreed to meet, and, on April 9, Barker inspected...
-
Larussa Inc. is preparing its annual budgets for the year ending December 31, 2011. Accounting assistants furnish the data shown below. An accounting assistant has prepared the detailed manufacturing...
-
A monopoly water slide has demand of p(Q) = a - bQ, where p is the price per slide ("ride"), Q is the quantity of slides demanded, and a, b > 0. Fixed costs are F = 0 and constant marginal costs are...
-
Kerosene at 20C flows through a contraction section as shown. A pressure gage connected between the upstream pipe and throat section shows a pressure difference of 25 kPa. The gasoline velocity in...
-
Suppose that there are 5 firms in an industry with equal market shares of 20%, 20%, 20%, 20%, 20%. Market price elasticity of demand is -1.2. If firm X's production cost function is C(q)- 10+3q and...
-
What are the expected value and standard deviation of the random variable generated in question 79? Question 79 In a game, a player rolls two dice and counts how many points he gets between them....
-
A piston-cylinder assembly contains 0.5 kg of water at 50C and 500 kPa. It is then isobarically heated until all the water is vaporized. What is the fi nal temperature and volume?
-
Of 500 students in a high school, 72 % have indicated that they are interested in attending college. What is the probability of selecting a random sample of 50 students wherein the sample proportion...
-
Assume that the total value of the following items is $600 billion in a specific year for Upper Mongoose: net exports = $50 billion; value of new goods and services produced in the underground...
-
W is a normally distributed random variable with mean 0 and variance 1, and V is a w2-distributed random variable with degrees of freedom (n - 1). How can both t and F distributions be defined in...
-
Mr. Green Fatigues is riding a Ferris Wheel! The Ferris wheel has a diameter of 40 metres and completes one revolution every 90 seconds. At its lowest point the Ferris Wheel is 2 metres above the...
-
What are the key dimensions of critical thinking 2. Watch the NBC Learn video on Diet Scams. What types of claims are made in this video Are they valid Elaborate on your responses. Discuss this video...
-
What is a cutoff bank statement? How is it used by auditors?
-
Two automatic transactions can be produced in a computerized accounting system: (1)Cheque printing and signature and (2) Purchase order at a preprogrammed stock reorder point. Required: Assume...
-
High Roller Inc. needs an audit and has asked two different audit firms to bid on the engagement. Both auditors assess the engagement risk to be high. Auditor A declines the engagement, but Auditor B...
-
Use the Internet to access Home Depot's most recent annual report. a. What evidence did you find that Home Depot continues to rely on present worth analysis in its corporate decision making? b. Does...
-
Use an Internet search engine to identify three companies or agencies that use present worth analysis to make business decisions as evidenced in their annual reports.
-
Use the Internet to access ConocoPhillips's most recent annual report. a. What evidence do you find that ConocoPhillips continues to rely on present worth analysis in its corporate decision making?...
Study smarter with the SolutionInn App