Question
Cash Book Opening balance b/d 8,632 Payments 66,592 Receipts 65,000 Closing balance c/d 7,040 73,632 73,632 On investigation you discover the following: 1. Bank charges
Cash Book | ||||
|
|
|
|
|
Opening balance b/d | 8,632 |
| Payments | 66,592 |
Receipts | 65,000 |
| Closing balance c/d | 7,040 |
| 73,632 |
|
| 73,632 |
On investigation you discover the following:
1. Bank charges amounting to 320 are shown on the bank statement but have not been entered into the cash book.
2. A cheque drawn for 410 has been entered in error as a receipt in the cash book.
3. A cheque for 80 has been returned by the bank marked return to drawer but it has not been written back in the cash book.
4. Dividends received amounting to 60 was transferred directly to the bank and not entered in the cash book.
5. The opening balance in the cash book was brought down in error and should have been entered as 9,052.
6. The final entry in the paying-in book shows a deposit of 10,432 which was not credited to the account by the bank until 2 August 2019.
7. Three cheques paid to suppliers for 836, 1,600, and 1,300 were not presented to the bank until 5 August 2019.
8. The bank has debited a cheque for 300 in error to Max Youngs account.
9. The bank statement at 31 July 2019 shows an overdrawn balance of 696.
Item 2 - A cheque drawn for 410 has been entered in error as a receipt in the cash book. How do you correct this error? Credit 820 to the cashbook Add 820 to the 'balance as per bank statement' in the bank reconciliation statement as at 31st July 2019 Add 410 to the 'balance as per bank statement' in the bank reconciliation statement as at 31 st July 2019 Credit 410 to the cashbook
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started