Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. 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.

  1. Cheques amounting to Kes 5,000 were not presented by creditors to the bank for payment.
  2. The bank had paid standing orders amounting to Kes 8000 on behalf of Maembe Tamu.
  3. The bank charges for the month of December amounted to Kes 500.
  4. There were direct deposits by debtors amounting to Kes 300.
  5. Maembe Tamu had banked cheques amounting to Kes 800 and these were not yet credited by the bank


Required:

  1. Prepare an updated cash book 
  2. Prepare an updated bank reconciliation statement

Step by Step Solution

3.36 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Da te Updated As art Dec sad Bol bld as Unnesented standing ordn Maembe Tamu Cas... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Anne Marie Ward, Andrew Thomas

9th Edition

1526803003, 978-1526803009

More Books

Students also viewed these Accounting questions

Question

Differentiate between classical and operant conditioning.

Answered: 1 week ago