Question
Ashele received his bank statement dated 31 December 2016. The balance as per the bank statement did not agree with the balance on the nominal
Ashele received his bank statement dated 31 December 2016. The balance as per the bank statement did not agree with the balance on the nominal ledger account as at 31 December 2016 of P14,140 credit. On investigation the following errors were noted:
- Bank charges of P210 for 2016 had not been accounted for in the nominal ledger.
- Cash receipts from a credit customer of P1,120 had been debited twice in the nominal ledger.
- A direct lodgement recorded by the bank on the 20 December 2016 for P4,125 was not accounted for in the nominal ledger.
- A cheque drawn for P225 was debited in error in the nominal ledger as P522.
- Ashele took cash drawings of P1,452 out of the business bank account during 2016.
These were not recorded in the nominal ledger.
Required: Prepare the corrected cash book for A. Ashele as at 31 December 2016.
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