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i need the answer please! On 30th September 2016, Armagh's cash book showed an overdraft balance of 600, while the latest bank statement for the
i need the answer please!
On 30th September 2016, Armagh's cash book showed an overdraft balance of 600, while the latest bank statement for the month's end showed he was in credit by E225. Further checking revealed: a. Cheques drawn, amounting to 600, had been entered in the cash book but not yet presented. b. Cheques received amounting to E250 had been entered in the cash book but not yet credited by the bank. c. On Armagh's instruction the bank had transferred interest of 80 from the deposit account to the current account, recording the transfer on 4th October 2016. Armagh credited this amount to the cash book on 30th September. d. Bank charges of 55 shown in the bank statement had not been entered in the cash book. e. The payments side of the cash book had been undercast by 25. f. Dividends received of 350 had been credited to the bank account but not yet entered in the cash book. 9. A cheque drawn for 125 on the deposit account had been shown in the cash book as drawn on the current account. h. A cheque issued to Smith Ltd. for 40 was replaced when out of date. It was entered again in the cash book and both cheques are included in the total of unpresented cheques above. Required: a) Make the necessary adjustments to ensure the cash book is correct as at 30th [12] September 2016. Prepare a statement reconciling the corrected cash book with the bank [8] statement balance at 30th September 2016. b) Step by Step Solution
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