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Answer the following questions with workings please The following is a summary of a cash book as presented by Active Trading for the month of
Answer the following questions with workings please
The following is a summary of a cash book as presented by Active Trading for the month of November 20x8: Receipts Balance cd 150,690 Balance bid 39.540 Payments 190.230 107.610 82.620 120.230 All receipts are banked and all payments are made by cheques. On investigation you discovered: 1. Interest expense of $860 entered on the bank statement has not been entered in the cash book Cheques drawn amounting to $8,340 had not been presented to the bank for payment. Cheques received in total 59,386 had been entered in the cash book and paid into the bank, but had not been credited by the bank until 3 December 20x8. A cheque for $920 had been entered in the cash book as a receipt instead of as a payment. A cheque received from K Wong for $1,800 had been returned by the bank and marked *refer to drawer'. No adjustment has been made in the cash book. A direct debit of $630 on 20 November had not been entered in the cash book. All dividends received are credited directly to the bank account. During November total amount of $2,620 were credited by the bank but no entries were made in the cash book A cheque drawn for $860 for motor expenses had been incorrectly entered in the cash book as S60 The balance brought forward in the cash book should have been $170,610 (credit) not $107,610 (credit) REQUIRED: (a) Show the adjustments required in the cash book. (b) Prepare a bank reconciliation statement as at 30 November 20x8
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