Question
Question Two c) BSD Ltd has prepared its October 2018 bank reconciliation for auditors to review. As at 31 October 2018 the ledger balance was
Question Two c) BSD Ltd has prepared its October 2018 bank reconciliation for auditors to review. As at 31 October 2018 the ledger balance was GH 2,450 (Credit) but the bank statement showed that the company has funds amounting to GH3,743. The following are useful information: The company arranged for the bank to transfer the dollar equivalent of GH 500,000 to a supplier in the United States. Charges on the transfer of 0.5% have not been recorded in the books of BSD Ltd. The CEO of BSD Ltd arranged for an amount of GH3,000 to be transferred from his personal bank account into the companys account. The bank made the transfer on 31 October 2018, but BSD Ltd has not made any entry in its books. A Cheque for Electricity Company amounting to GH5,600 issued and recorded correctly in the bank statements appeared in BSD ledger as GH6,500. The following cheques issued by BSD Ltd in October 2018 did not appear on the bank statement: Cheque # 00450-GH2,000 Cheque # 00456-GH 4,800 Cheque # 00500-GH 5,250 Three cheques received and booked by BSD Ltd amounting to GH 4,800 were not credited by the bank Income earned on investment with an advice by the bank of GH2,457 was not recorded by the bank until 3 November 2018. Required: Prepare the adjusted cash book and bank reconciliation statement of BSD LTD
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