BS- TUTORIAL 8 [Compatibility Mode] - Word Ruusa Nathingo File Home Insert Design Layout References Share Mailings Review View Help Tell me what you want to do TUTORIAL (BANK RECON) On 7 January 2016, F. Campbell received her bank statements for the month ended 31 December 2015. The bank statement showed a balance of N$23,575 (overdraft) as at 31 December while the cash book showed a negative balance of N$41,540 (credit) as at the date. On examination of the cash book and the bank statement the following were discovered: 1) A dishonored cheque of N$1,540 had been recorded as cash receipts, in error, in the cash book; 2) Bank charges of N$65 had not been recorded in the cash book; 3) F. Campbell has an approved overdraft level of $20,000 from her bank. The bank statement contains a penalty of N$ 200 as F. Campbell exceeded the approved overdraft level. This has not been recorded in the cash book; 4) A cheque of N$100 to replenish the petty cash tin, was recorded in the bank account but omitted from the cash book, 5) Cash receipts of N$4,700 were posted as cash payments of N$7,400 in the cash book; 6) On 17th December F. Campbell lodged cash of N$610 to her bank personal account. This was lodged to the business bank account in error by the bank; 7) Standing orders of N$770 had not been posted to the cash book, 8) Receivables of N$4,350 were lodged directly to the bank account. No record had been made of this in the cash book; 9) Ledgements of N$4,190, lodged to the bank account on 31 December 2015, had not been| credited by the bank; 10) The following cheques, drawn on the bank account, had not been presented to the bank for payment as at 31 December 2015: Cheque Number Date Cheque was written NS No: 1425 24 June 2015 925 No: 2651 11 November 2015 1,025 No: 3001 28 December 2015 5,240 No: 3010 31 December 2015 2,120 You are required to: a) Prepare the adjusted cash book for the month of December 2015. (10 Marks) b) Prepare a statement on 31 December 2015, reconciling the adjusted cash book with the bank statement balance, (6 Marks) c) Explain any two reasons for preparing bank reconciliation on a regular basis. (4 Marks) Page 1 of 1 362 words DX English (United States) + 80% Type here to search o W PI W 28C ^ a + 0) 6:47 pm 21/09/2021