In the draft accounts for the year ended 31st August, 2020 of Azay Ltd, the balance at the bank according to the cash book was a credit balance of GH¢894,680. Subsequently, the following discoveries were made: a. Bank commission charged of GH¢169,560 and bank interest charged of GH¢109,100 have been entered in the bank statement on 23 August, 2020 but not included in the cash book b. Cheque for GH¢17,500 has been recorded twice as a credit in the cash book. c. Traders’ credits totalling GH¢210,000 have been credited in the bank statement on 26 August, 2020but not yet recorded in the cash book. d. A cheque payment of GH¢145,000 has been recorded in the cash book as a receipt. e. Cheque dated 3 July, 2020 for GH¢310,840 in favour of Akos Ltd has been correctly recorded in the bank statement, but included in the cash book payments as GH¢310,840. f. Cheques paid according to the cash book during August 2020 and totaling GH¢400,500 were not presented for payment to the bank until September 2020. g. A standing order payment of GH¢75,000 on 17 August to Townside Publications has been recorded in the bank statement but is not mentioned in the cash book. h. Amounts received in the last few days of August 2020 totalling GH¢1,895,600 and recorded in the cash book have not been included in the bank statement until September 2020. i. The recently received bank statement shows a cheque of GH¢29,450 received from Kweku and credited in the bank statements on 9 August 2020 has now been dishonoured and the necessary entry passed in the bank statement on 26 August 2020. The only entry in the cash book for this cheque records its receipt on 8 August 2020. Required: i. Prepare a computation of the balance at bank to be included in Azay Ltd’s Statement of Financial Position as at 31 August, 2020. ii. Prepare a Bank Reconciliation Statement as at 31 August, 2020 for Azay Ltd.
In the draft accounts for the year ended 31st August, 2020 of Azay Ltd, the balance at the bank according to the cash book was a credit balance of GH¢894,680. Subsequently, the following discoveries were made: a. Bank commission charged of GH¢169,560 and bank interest charged of GH¢109,100 have been entered in the bank statement on 23 August, 2020 but not included in the cash book b. Cheque for GH¢17,500 has been recorded twice as a credit in the cash book. c. Traders’ credits totalling GH¢210,000 have been credited in the bank statement on 26 August, 2020but not yet recorded in the cash book. d. A cheque payment of GH¢145,000 has been recorded in the cash book as a receipt. e. Cheque dated 3 July, 2020 for GH¢310,840 in favour of Akos Ltd has been correctly recorded in the bank statement, but included in the cash book payments as GH¢310,840. f. Cheques paid according to the cash book during August 2020 and totaling GH¢400,500 were not presented for payment to the bank until September 2020. g. A standing order payment of GH¢75,000 on 17 August to Townside Publications has been recorded in the bank statement but is not mentioned in the cash book. h. Amounts received in the last few days of August 2020 totalling GH¢1,895,600 and recorded in the cash book have not been included in the bank statement until September 2020. i. The recently received bank statement shows a cheque of GH¢29,450 received from Kweku and credited in the bank statements on 9 August 2020 has now been dishonoured and the necessary entry passed in the bank statement on 26 August 2020. The only entry in the cash book for this cheque records its receipt on 8 August 2020. Required: i. Prepare a computation of the balance at bank to be included in Azay Ltd’s Statement of Financial Position as at 31 August, 2020. ii. Prepare a Bank Reconciliation Statement as at 31 August, 2020 for Azay Ltd.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 2SEQ
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In the draft accounts for the year ended 31st August, 2020 of Azay Ltd, the balance at the bank according to the
a. Bank commission charged of GH¢169,560 and bank interest charged of GH¢109,100 have been entered in the bank statement on 23 August, 2020 but not included in the cash book
b. Cheque for GH¢17,500 has been recorded twice as a credit in the cash book.
c. Traders’ credits totalling GH¢210,000 have been credited in the bank statement on 26 August, 2020but not yet recorded in the cash book.
d. A cheque payment of GH¢145,000 has been recorded in the cash book as a receipt.
e. Cheque dated 3 July, 2020 for GH¢310,840 in favour of Akos Ltd has been correctly recorded in the bank statement, but included in the cash book payments as GH¢310,840.
f. Cheques paid according to the cash book during August 2020 and totaling GH¢400,500 were not presented for payment to the bank until September 2020.
g. A standing order payment of GH¢75,000 on 17 August to Townside Publications has been recorded in the bank statement but is not mentioned in the cash book.
h. Amounts received in the last few days of August 2020 totalling GH¢1,895,600 and recorded in the cash book have not been included in the bank statement until September 2020.
i. The recently received bank statement shows a cheque of GH¢29,450 received from Kweku and credited in the bank statements on 9 August 2020 has now been dishonoured and the necessary entry passed in the bank statement on 26 August 2020.
The only entry in the cash book for this cheque records its receipt on 8 August 2020.
Required:
i. Prepare a computation of the balance at bank to be included in Azay Ltd’s
ii. Prepare a
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