Question
On 31 st December 2020 the books of Maembe Tamu showed a debit balance of Kes 12,000 on the cash book while the bank statement
- On 31st December 2020 the books of Maembe Tamu showed a debit balance of Kes 12,000 on the cash book while the bank statement on that date showed an overdraft of Kes 2,000. On investigation the following discrepancies were detected;
A cheque from a debtor of Kes 10,000 was returned marked ‘R/D’ a record of which had not been effected in the cash book.
- Cheques amounting to Kes 5,000 were not presented by creditors to the bank for payment.
- The bank had paid standing orders amounting to Kes 8000 on behalf of Maembe Tamu.
- The bank charges for the month of December amounted to Kes 500.
- There were direct deposits by debtors amounting to Kes 300.
- Maembe Tamu had banked cheques amounting to Kes 800 and these were not yet credited by the bank
Required:
- Prepare an updated cash book
- Prepare an updated bank reconciliation statement
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Introduction To Financial Accounting
Authors: Anne Marie Ward, Andrew Thomas
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