Answer all questions Maria received the bank statement for the month of December 2019 on 5th...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Answer all questions Maria received the bank statement for the month of December 2019 on 5th January 2020. As at 31st December 2019 the bank statement balance was sh. 98,400 whereas the cashbook balance was sh. 38,600CR. The accountant investigated the matter and discovered the following discrepancies: Bank charges of sh. 1,800 had not been entered in the cash book. Cheques drawn by Maria totaling sh. 50,400 were still outstanding. The bank had credited a deposit of sh. 9,800 paid into the bank on 28th December 2019 by Mark in Maria's account in error. A standing order payment for rent of sh. 24,000 had gone through on 30th December 2019. 11) 111 iv) v) vi) vii) viii) ix) x) In the cash book Maria had entered a payment for furniture of sh. 47,800 as sh. 48,700 in error. A cheque for sh. 8,500 from a debtor had been returned by the bank marked "Refer to drawer" but had not been written back into the cash book. Receipts of sh. 52,000 on 31st December 2019 were deposited in the bank in January 2020. The bank had recorded a cheque payment of sh. 39,000 as sh. 93,000 in error. A cheque payment of sh. 75,000 for purchases was recorded as sh. 57,000 in the cashbook. In the month of December 2019 some customers had settled their debts by paying the amounts totalling sh. 234,200 directly to the bank. Required: a) A bank reconciliation statement as at 31st December 2019 reconciling both the bank statement balance and the cashbook balance to the correct cash balance. b) Show the compound journal entries to update the cashbook. Answer all questions Maria received the bank statement for the month of December 2019 on 5th January 2020. As at 31st December 2019 the bank statement balance was sh. 98,400 whereas the cashbook balance was sh. 38,600CR. The accountant investigated the matter and discovered the following discrepancies: Bank charges of sh. 1,800 had not been entered in the cash book. Cheques drawn by Maria totaling sh. 50,400 were still outstanding. The bank had credited a deposit of sh. 9,800 paid into the bank on 28th December 2019 by Mark in Maria's account in error. A standing order payment for rent of sh. 24,000 had gone through on 30th December 2019. 11) 111 iv) v) vi) vii) viii) ix) x) In the cash book Maria had entered a payment for furniture of sh. 47,800 as sh. 48,700 in error. A cheque for sh. 8,500 from a debtor had been returned by the bank marked "Refer to drawer" but had not been written back into the cash book. Receipts of sh. 52,000 on 31st December 2019 were deposited in the bank in January 2020. The bank had recorded a cheque payment of sh. 39,000 as sh. 93,000 in error. A cheque payment of sh. 75,000 for purchases was recorded as sh. 57,000 in the cashbook. In the month of December 2019 some customers had settled their debts by paying the amounts totalling sh. 234,200 directly to the bank. Required: a) A bank reconciliation statement as at 31st December 2019 reconciling both the bank statement balance and the cashbook balance to the correct cash balance. b) Show the compound journal entries to update the cashbook.
Expert Answer:
Answer rating: 100% (QA)
Bank Reconciliation Statement as at 31st December 2019 Description Bank Statement Cash Book Adjustme... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The bank statement for the month of December for Maddison Ltd. is presented below: Symbols - NSF (Non sufficient funds), SC (Service charge), EFT (electronic fund transfer) Cheque #18 was correctly...
-
The following bank statement for the month of May is for El Guapo Industries: The following information was taken from the books at El Guapo: Required Prepare El Guapo's May bank reconciliation and...
-
David has a savings account with a 7,000 balance today. The account earns an annual percentage rate of interest of 4.00%, compounded monthly. David plans to make no other deposits or withdrawals. How...
-
A politician claims that the mean salary for managers in his state is more than the national mean, $85,000. Assume the the population is normally distributed and the population standard deviation is...
-
During 2014, Alpha, Inc., had sales of $ 6.86 billion, operating profit of $ 2.20 billion, and net income of $ 3.40 billion. EPS was $ 6.75. On May 11, 2015, one share of Alphas common stock was...
-
Comment on or explain: a. Providing health insurance to achieve equity goals creates a trade-off with the efficient allocation of resources to the health care industry. b. If the government were to...
-
Given the following costs for Lease A, all incurred during 2018, prepare income statements and unclassified partial balance sheets for a successful efforts (SE) company and a full cost (FC) company....
-
Refer to Problem 16-1 and assume that the company had $3 million in assets at the end of 2008. However, now assume that the company pays no dividends. Under these assumptions, what additional funds...
-
What is the area of this figure? 5 mm 7 mm Submit 6 mm square millimeters 5 mm 1 mm 2 mm
-
It is now January 2018. The year 2017 finished well. The finalized year-end financial statements for 2017 are provided in the excel file associated with this assignment. Randolf and Tenisa at Comfy...
-
There are pros and cons to offshore outsourcing. List and explain 2 pros and 2 cons.
-
Paul Pindel, age 23, but with the mental capacity of a five-year-old, lived in a group home in a residential neighborhood in Mitchell City, along with eight other young adults with intellectual...
-
Does Ricardo see a limit to economic growth? If yes, what? How are Ricardo's views of limits on economic growth related to his theory of rents? In what way could any such limit be considered...
-
4. Suppose Players 1 and 2 are participating in a first-price sealed bid auction with private, independent valuations. Each player's valuation of the object to be sold, which is assumed to be worth o...
-
I want to thank you in advance. I'm changing careers, and I'm trying to get the skills and knowledge and understandings I need. Below is the case study. Overview Alignment with the business or...
-
You have an opportunity to invest $50,000 now in return for $60,100 in one year. If your cost of capital is 7.7%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.).
-
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option...
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
The payback period of the investment proposal presented in question 4 is: a. 0.37 years b. 0.50 years c. 2.00 years d. 2.67 years
-
The Pepper Shop is evaluating a capital expenditure proposal with the following predicted cash flows: At a discount rate of 12 percent, the project's net present value is: a. $2,375 b. \($5,555\) C....
-
The accounting rate of return on the initial investment presented in question 4 is: a. 0.125 b. 0.156 C. 0.219 d. 0.375
Study smarter with the SolutionInn App