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6. Simon's Cash Book shows a DR balance of GH240, his bank statement shows an overdraft of GH100. Upon thorough investigation by Simon, the following

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6. Simon's Cash Book shows a DR balance of GH240, his bank statement shows an overdraft of GH100. Upon thorough investigation by Simon, the following findings were made: i. Simon had omitted standing orders totalling GH175 and back charges of GH7 from his cash book. ii. A cheque for GH76 from a debtor was dishonoured iii. Simon had transferred GH500 from his deposit account to his current account, but the bank had performed the reverse transfer iv. Simon had brought forward a total of GH2,154 on the receipts side of the cash book as GH 1,254 v. Outstanding cheques, excluding those written bank, totalled GH750 vi. Uncleared lodgements totalled GH724 vii. In the previous month, Simon had written back old cheques totalling GH34 without telling the bank that these were to be cancelled. One of these cheques, for GH8 was presented for payment and appeared on the bank statement. Required: Show the adjustments to be made to the cash book and produce a bank reconciliation statement. From the information given below relating to PWW Ltd, you are required: a) To make such additional entries in the cash at bank account of PWW Ltd as you consider necessary to show the correct balance at 31st October 2002. b) To prepare a statement reconciling the correct balance in the cash at bank account as shown in (a) above with the balance at 31 October 2002 that is shown on the bank statement from Z Bank Plc

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