The bank statement of the Fast Company shows a balance of GHC10,000 on 31 January 2019 whereas the company's cash book shows a balance of GHC8,525. The following reasons have been identified for this discrepancy.An amount of GHC822 sent to the bank for deposit on January 31, 2019 does not appear in the bank statement.The following checks issued during the month of January have not yet been cleared by the bank.Check No: 201, Issue date: 15 January 2015, Amount; GHC200;Check No: 212, Issue date: 19 January 2015, Amount; GHC20;Check No: 216, Issue date: 25 January 2015, Amount; GHC610;A note receivable amounting to GHC1,588 has been collected by bank for the company.The bank statement shows that interest amounting to GHC50 has been earned on average account balance during January.The bank has charged GHC10 for the collection of a note.A check of GHC100 deposited by the company has been charged back as NSF.An amount of GHC25 has been deducted by bank as service charges for the month of January.The check no. 220 is issued to electricity company. The check is in the amount of GHC95 but is erroneously recorded in the cash payments journal as GHC59.Required:1. Prepare an adjusted cash book for the month2.Prepare a bank reconciliation statement.

Bank reconciliation statement is prepared to reconcile the balance of cash book or pass book of any…

Answered: The bank statement of the Fast Company…

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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The bank statement of the Fast Company shows a balance of GHC10,000 on 31 January 2019 whereas the company's cash book shows a balance of GHC8,525. The following reasons have been identified for this discrepancy.

An amount of GHC822 sent to the bank for deposit on January 31, 2019 does not appear in the bank statement.
The following checks issued during the month of January have not yet been cleared by the bank.

Check No: 201, Issue date: 15 January 2015, Amount; GHC200;

Check No: 212, Issue date: 19 January 2015, Amount; GHC20;

Check No: 216, Issue date: 25 January 2015, Amount; GHC610;

A note receivable amounting to GHC1,588 has been collected by bank for the company.
The bank statement shows that interest amounting to GHC50 has been earned on average account balance during January.
The bank has charged GHC10 for the collection of a note.
A check of GHC100 deposited by the company has been charged back as NSF.
An amount of GHC25 has been deducted by bank as service charges for the month of January.
The check no. 220 is issued to electricity company. The check is in the amount of GHC95 but is erroneously recorded in the cash payments journal as GHC59.

Required:

1. Prepare an adjusted cash book for the month

2.Prepare a bank reconciliation statement.

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