On 30th September, 2015 the bank column of the cash book of Nyama Ltd showed a balance of GH¢568,400 while the bank statement received for that same month showed an overdraft of GH¢418,500. An investigation conducted by the cashier revealed the following: i. a cheque drawn in favour of Aki Ola Ltd for GH¢23,100 was included in the cash book receipt as GH¢231,000 ii. as at 30th September 2015, the bank had not yet credited the company's accounts with deposits totaling GHC825,000 iii. cheques drawn amounting to GHC63,000 had not been presented to the bank for payment iv. cheques received for GH¢330,000 was recorded as GH¢303,000 in the cash book v. a cheque drawn for GH$150,000 in favour of Dream Drive Ltd has been dishonoured by the bank vi. according to the bank statement, the bank charged a commission on turnover of GH¢22,800 vii. a cheque for GH$125,000 drawn by another customer had been entered to Nyama Ltd's account in error by the bank Required a. Determine the balance at bank to be included in Nyama Ltd.'s statement of financial position as at 30th September, 2015. b. Prepare a reconciliation statement

On 30th September, 2015 the bank column of the cash book of Nyama Ltd showed a balance of GH¢568,400 while the bank statement received for that same month showed an overdraft of GH¢418,500. An investigation conducted by the cashier revealed the following: i. a cheque drawn in favour of Aki Ola Ltd for GH¢23,100 was included in the cash book receipt as GH¢231,000 ii. as at 30th September 2015, the bank had not yet credited the company's accounts with deposits totaling GHC825,000 iii. cheques drawn amounting to GHC63,000 had not been presented to the bank for payment iv. cheques received for GH¢330,000 was recorded as GH¢303,000 in the cash book v. a cheque drawn for GH$150,000 in favour of Dream Drive Ltd has been dishonoured by the bank vi. according to the bank statement, the bank charged a commission on turnover of GH¢22,800 vii. a cheque for GH$125,000 drawn by another customer had been entered to Nyama Ltd's account in error by the bank Required a. Determine the balance at bank to be included in Nyama Ltd.'s statement of financial position as at 30th September, 2015. b. Prepare a reconciliation statement

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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