1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.

1. The cash book of Adomako Enterprise showed a credit balance of GHS 138,150 whereas the Bank statement showed a debit balance of GHS 229,710 on August 31, 2014. Subsequently, the following discoveries were made: • Bank charges of GHS 8,700 had not been entered in the cash book. • Adomako enterprise had entered a receipt of GHS 27,840. • Cheques drawn for payment to creditors totaling GHS 109,000 had not been presented for payment. • Customers owing GHS 114,000 had paid directly to the bank but Adomako Enterprise was not informed. • Cheques lodgements of GHS 232,810 had not been entered by the bank. • The bank had carried out an order to pay an insurance premium of GHS 50,000 on behalf of Adomako Enterprise. • A cheque for GHS 23,400 received from a customer and paid into the bank has been dishonoured but not entered in the cash book. • The bank had entered a withdrawal of GHS 59,000 as GHS 69,500. • An investment interest of GHS 29,000 has been credited to Adomako Enterprise account by the bank.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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