Question 3

Bank balances for Nana Kofi business are as follows:

Balance as per bank statement, 31 July 2012 GH12,345 (Cr)

Balance as per cash book (bank column), 31 July 2012 GH38,086 (Dr)

The following events were not yet recorded in the cash book:

(i) A trade debtors cheque for GH5,000 was returned because of insufficient funds.

(ii) Monthly bank charges amounted to GH120.

(iii) During the month, the following sums were paid by standing orders:

Insurance premium GH1,220

Rent GH2,600

(iv) A customer deposited a cheque for GH3,900 directly into Nana Kofi business bank account on 20 July 2010.

Additional information:

(v) A cheque for GH2,500 deposited into the bank account on 31 July 2012 did not appear on the bank statement.

(vi) Post-dated cheques totalling GH23,000 were held in the cash till on 31 July 2012, but had already been recorded in the cash book as banked.

(vii) The following cheques issued by the business were not presented to the bank for payment:

Cheque No. Amount

445216 GH991

445217 GH1,371

445218 GH2,635

(viii) A cheque payment of GH4,321 was entered into the cash book as GH4,123.

Required:

Prepare a bank reconciliation statement for the business as at 31 July 2012 without adjusting the cash book. Start with the balance as per bank statement.