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Question #2 The following is a summary of a cash book as presented by Cleopatra Ltd for the month of October $ 1,469 $ Balance
Question #2 The following is a summary of a cash book as presented by Cleopatra Ltd for the month of October $ 1,469 $ Balance Receipts bld Balance c/d 1.262 761 554 Payments 2.023 2.023 All receipts are banked and all payments are made by cheque. On investigation you discover: 1. Bank charges at $136 entered on the bank statement have not been entered in the cash book. 2. Cheques drawn amounting to $267 had not been presented to the bank for payment. 3. Cheques received totaling $762 had been entered in the cash book and paid into the bank, but had not been credited by the bank until 3 November 4. A cheque for $22 for sundries had been entered in the cash book as a receipt instead of as a payment. 5. A cheque received from K Jones for $80 had been returned by the bank and marked 'no funds available'. No adjustment has been made in the cash book. 6. A standing order for a business rates installment of $150 on 30 October had not been entered in the cash book. 7. All dividends received are credited directly to the bank account. During October amounts totaling S62 were credited by the bank but no entries were made in the cash book. 8. A cheque drawn for $66 for stationery had been incorrectly entered in the cash book as $60. 9. The balance brought forward in the cash book should have been $711 and not $761. Required: (a) Show the adjustments required in the cash book (Revised Cash Book) (b) Prepare bank reconciliation statement as at 31 October
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