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The following cash book relates to Jockey Ltd for the month of October, 20x3. The bank statement had a debit balance of Sh 1,353,000. Required: Prepare an...

      

The following cash book relates to Jockey Ltd for the month of October, 2013. The bank statement had a debit balance of Sh 1,353,000.
fig461781302.png
On investigation the following was discovered;
1. Bank charges of Sh. 136,000 in the bank statement have not been reflected in the cash book.
2. Cheques drawn amounting to Sh. 267,000 had not been presented to the bank for payment.
3. Cheques received totaling to Sh. 726,000 had been entered in the cash book but credited by the bank by 3rd November.
4. A cheque for Sh. 22,000 for expenses had been entered in the cash book as a receipt instead of a payment
5. A cheque received from John for Sh. 80,000 had been returned by the bank and marked “No Funds Available”. No adjustment has been made in the cash book
6. A standing order for business rates of Ksh 150,000 on 30th October had not been entered in the cash book.
7. Dividends of Sh. 62,000 were received and credited directly to the bank account with no entries in the cash book.
8. A cheque drawn for Sh. 66,000 for stationery had been incorrectly entered in the cash book as Sh. 60,000.
9. The balance brought forward in the cash book should have been Sh. 711,000 not Sh. 761,000.

Required:
Prepare an adjusted cash book and a bank reconciliation statement as at 31 October, 20x3 to reconcile the difference in the cash book and bank statement balance.

  

Answers


Kavungya
fig471781304.png
Kavungya answered the question on August 17, 2021 at 10:04


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