Question $5$

The book keeper of Doris's Ltd was preparing the reconciliation for the month of July $2020$ and noted a difference between the bank statement balance and the balance on the bank account

$7$

in the general ledger. The bank statement shows a balance of GH$4,788$ cash at bank. The balance on the bank account $($cash book$)$ in the general ledger was $GH2,022($credit$).$

The following reasons accounted for the difference:

Five cheques amounting to GH$66,591$ paid to suppliers have not yet been presented at the bank.

A Cheque issued was incorrectly recorded in the cash book as GH$8,871.$ The cheque was correctly debited to the bank statement on $15$ July $2020$ as GH$8,277.$

Bank Charges of GH$8,043$ was debited by the bank on $29$ July $2020.$

A customer's cheque amounting to GH$6,720$ was returned by the bank in July as the customer had insufficient funds in his account. The book keeper is yet to record the returned cheque in their books.

A deposit of GH$17,850$ entered in Doris's cash book on $30$ July $2020$ was credited on the bank statement on $3$ August $2020.$

The bank has incorrectly credited Doris's account with an interest of GH&$4,620.$ This is interest on a deposit account held by the Managing Director personally. The bank had not corrected the error by $31$ July $2020.$

Required:

a$)$ Prepare Doris's adjusted cash book including the necessary correcting entries as at $31$ July $2020.$

b$)$ Prepare a reconciliation of the bank statement balance to agree with the cash book balance as at $31$ July $2020.$