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2. On 31 December 2018 the bank columns of K Towett's cash book showed a balance of Sh.45,000. The bank statement as at 31 December 2018 showed a credit balance of Sh.88,500 on the account. You checked the bank statement with the cash book and found that the following had not been entered in the cash book: i) A standing order to Jubilee insurance for Sh.6,000 had been paid by the bank ii) Bank interest receivable of Sh.7,200 had not been entered in to the account Bank charges of Sh.900 had been made A credit transfers of Sh.7,800 from KB Ltd had been paid direct into the account v) Jowett's deposit account balance of Sh.42,000 had been transferred into his bank current account vi) A returned cheque of Sh.2,100 dishonored by C Hill had been entered on the bank statement. You also found that two cheques, payable to P Young Sh.7,500 and K Clara Sh.8,700, had been entered in the cash book but had not been presented for payment. In addition, a cheque for Sh.20,700 had been paid into the bank on 31 December 2018 but had not been credited on the bank statement until 2 January 2019. Required i) Starting with the cash book debit balance of Sh.45,000 write the cash book up to date ii) Draw up a bank reconciliation statement as on 31 December 2018

2. On 31 December 2018 the bank columns of K Towett's cash book showed a balance of Sh.45,000. The bank statement as at 31 December 2018 showed a credit balance of Sh.88,500 on the account. You checked the bank statement with the cash book and found that the following had not been entered in the cash book: i) A standing order to Jubilee insurance for Sh.6,000 had been paid by the bank ii) Bank interest receivable of Sh.7,200 had not been entered in to the account Bank charges of Sh.900 had been made A credit transfers of Sh.7,800 from KB Ltd had been paid direct into the account v) Jowett's deposit account balance of Sh.42,000 had been transferred into his bank current account vi) A returned cheque of Sh.2,100 dishonored by C Hill had been entered on the bank statement. You also found that two cheques, payable to P Young Sh.7,500 and K Clara Sh.8,700, had been entered in the cash book but had not been presented for payment. In addition, a cheque for Sh.20,700 had been paid into the bank on 31 December 2018 but had not been credited on the bank statement until 2 January 2019. Required i) Starting with the cash book debit balance of Sh.45,000 write the cash book up to date ii) Draw up a bank reconciliation statement as on 31 December 2018

College Accounting (Book Only): A Career Approach
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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2. On 31 December 2018 the bank columns of K Towett's cash book showed a balance of Sh.45,000. The bank statement as at 31 December 2018 showed a credit balance of Sh.88,500 on the account. You checked the bank statement with the cash book and found that the following had not been entered in the cash book: i) ii) ii) iv) A standing order to Jubilee insurance for Sh.6,000 had been paid by the bank Bank interest receivable of Sh.7,200 had not been entered in to the account Bank charges of Sh.900 had been made A credit transfers of Sh.7,800 from KB Ltd had been paid direct into the account v) Jowett's deposit account balance of Sh.42,000 had been transferred into his bank current account vi) A returned cheque of Sh.2,100 dishonored by C Hill had been entered on the bank statement. You also found that two cheques, payable to P Young Sh.7,500 and K Clara Sh.8,700, had been entered in the cash book but had not been presented for payment. In addition, a cheque for Sh.20,700 had been paid into the bank on 31 December 2018 but had not been credited on the bank statement until 2 January 2019. Required i) Starting with the cash book debit balance of Sh.45,000 write the cash book up to date ii) Draw up a bank reconciliation statement as on 31 December 2018
Transcribed Image Text:2. On 31 December 2018 the bank columns of K Towett's cash book showed a balance of Sh.45,000. The bank statement as at 31 December 2018 showed a credit balance of Sh.88,500 on the account. You checked the bank statement with the cash book and found that the following had not been entered in the cash book: i) ii) ii) iv) A standing order to Jubilee insurance for Sh.6,000 had been paid by the bank Bank interest receivable of Sh.7,200 had not been entered in to the account Bank charges of Sh.900 had been made A credit transfers of Sh.7,800 from KB Ltd had been paid direct into the account v) Jowett's deposit account balance of Sh.42,000 had been transferred into his bank current account vi) A returned cheque of Sh.2,100 dishonored by C Hill had been entered on the bank statement. You also found that two cheques, payable to P Young Sh.7,500 and K Clara Sh.8,700, had been entered in the cash book but had not been presented for payment. In addition, a cheque for Sh.20,700 had been paid into the bank on 31 December 2018 but had not been credited on the bank statement until 2 January 2019. Required i) Starting with the cash book debit balance of Sh.45,000 write the cash book up to date ii) Draw up a bank reconciliation statement as on 31 December 2018
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