The following is a summary of the cash book of Grow Ltd for March 20X9:

On investigation you discover that at 31 March 20X9:
1. The last page of the paying-in book shows a deposit of £1,904 that has not yet been credited by the bank.
2. Two debit card payments to suppliers on the last day of the month for £642 and £1,200 have not yet cleared at the bank.
3. Dividends received of £189 are shown on the bank statement but not entered in the cash book.
4. Bank charges of £105 shown on the bank statement have not been entered in the cash book.
5. A cheque for £54 has been returned by the bank marked ‘refer to drawer’, but it has not been written back in the cash book.
6. A payment for £141 has been entered in error as a receipt in the cash book.
7. The bank has debited £216 in error to the company’s account.

Required
a. Show the adjustments that should be made in the cash book.
b. Prepare a bank reconciliation statement at 31 March 20X9.

Transcribed Image Text:

Opening balance b/d Receipts Cash book £ 4,120 45,320 49,440 Payments Closing balance c/d £ 46,560 2,880 49,440