Question 2 a. The bank balance of John did not agree with the cash book debit balance of1,365,000 as at 31 July 2009. On comparing the bank statement and the cash book he found the following differences: a) The unpresented cheques amounted to 174000 b) Cheques amounting to278000banked on 29th July were not credited by the bank until 3rd October 2009. c) Bank charges amounting to 24000 had been debited in the bank account. d) Interest of 31000 on fixed deposit had been credited to the account by the bank. e) A cheque of 75000 deposited on 20th may was returned unpaid. f) Standing order amounting to 95000 had been paid by the bank. g) A cheque of 74000 had been credited in the cash book as 47000 Required: i. Adjusted cash book ii. Bank reconciliation statement b. Show the journal entries necessary to correct the following errors:
Question 2 a. The bank balance of John did not agree with the cash book debit balance of1,365,000 as at 31 July 2009. On comparing the bank statement and the cash book he found the following differences: a) The unpresented cheques amounted to 174000 b) Cheques amounting to278000banked on 29th July were not credited by the bank until 3rd October 2009. c) Bank charges amounting to 24000 had been debited in the bank account. d) Interest of 31000 on fixed deposit had been credited to the account by the bank. e) A cheque of 75000 deposited on 20th may was returned unpaid. f) Standing order amounting to 95000 had been paid by the bank. g) A cheque of 74000 had been credited in the cash book as 47000 Required: i. Adjusted cash book ii. Bank reconciliation statement b. Show the journal entries necessary to correct the following errors:
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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