Question
On 31st December, 2017, the balance sheet and income statement of Kalabule Limited showed the following items: Bank Balance overdrawn GH9,000; Profit for the year
On 31st December, 2017, the balance sheet and income statement of Kalabule Limited showed the following items: Bank Balance overdrawn GH9,000; Profit for the year GH50,000. The balance as stated in the Bank statement did not agree with the one shown in the cash book. However, upon entries made, the following discrepancies and additional information were discovered. A payment of GH740 made by a customer was wrongly posted in the cash book as GH960. The following items appeared in the bank statement only. i. Bank commission GH400 ii. Standing charges: loan repayment GH24,000 iii. Rent and rates GH3,000 iv. Dividend received from Nose Mask Ltd GH600 v. Unpresented cheques amounted to GH48,000 vi. Cheque remittances of GH600 and GH500 received from customers were dishonoured. vii. Uncollectible debts written of was GH500 7 | P a g e viii. The loan repayment included GH4,000 interest charges. viv. Uncredited cheques amounted to GH2,200. You are required to prepare: a. The adjusted cash book and The Bank Reconciliation Statement b. The Revised Income Statemen
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