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the previous answer wasn't correct and it was short we per alot of money to get such services. UESTION TWO Mulenga C.Ltd prepared the following
the previous answer wasn't correct and it was short we per alot of money to get such services.
UESTION TWO Mulenga C.Ltd prepared the following summary of receipts and paym en ts accou nt for the mon th of April 2016: Mulenga C.Ltd make all payments by cheques and all monies received are banke dimmediately. Before prepa ring bank reconciliation an in vestigation revealed the following: a. The ba lance brought forward from March 2016 in the ca sh book should be K750000 and not K770000 a. A cheque drawn for K128000 for a dvertising had been in correctly entered in th e cash book as K125000. a Dividends received in the month of April of k89000 were credited by the bank but no en tries were m ade in the ca sh book. - Business rates are pa id directly by the bank under a standing order a rrangeme nt. An a mount of K120000 was pa id on 30 April 2016 and no entries have bee n made in the ca sh book. e) A cheque received from Kebby for K207000 had been seturned by the bank an dm arked 'insuffficient funds'. No a dju stm ent has been made in the cashbook. 5) A cheque for K35000 for miscellaneous consumables was entered in the cash book as a receipt instead of as a payment. g Cheques received totalling K807 000 had been entered in the cashbook and pa id into the bank, but had not been credited by the bank until 3 May. 10. Cheques drawn amounting to K345000 had not been presented to the bank f or payment. 1 Bank service charges of K67000 appearing on the bank statement have not b een entered in the cashbook. REQUIRED: i) Calculate the closing balance that should appear on the cashbook taking into a ccount the appropriate information from the inve stigation. (15 Marks) ii) Prep are a bank reconciliation statem ent as at 30 April 2016.(10 M arks)Step by Step Solution
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