The bank statement oT the Fast Company snows a balance of GHCT0,000 January 2019 whereas the company's cash book shows a balance of GHC8 following reasons have been identified for this discrepancy. 1) An amount of GHC822 sent to the bank for deposit on January 31, : not appear in the bank statement. 2) The following checks issued during the month of January have not 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; 3) A note receivable amounting to GHC1, 588 has been collected by b company. 4) The bank statement shows that interest amounting to GHC50 has b on average account balance during January. 5) The bank has charged GHC10 for the collection of a note. 6) A check of GHC100 deposited by the company has been charged ba 7) An amount of GHC25 has been deducted by bank as service charge month of January.
The bank statement oT the Fast Company snows a balance of GHCT0,000 January 2019 whereas the company's cash book shows a balance of GHC8 following reasons have been identified for this discrepancy. 1) An amount of GHC822 sent to the bank for deposit on January 31, : not appear in the bank statement. 2) The following checks issued during the month of January have not 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; 3) A note receivable amounting to GHC1, 588 has been collected by b company. 4) The bank statement shows that interest amounting to GHC50 has b on average account balance during January. 5) The bank has charged GHC10 for the collection of a note. 6) A check of GHC100 deposited by the company has been charged ba 7) An amount of GHC25 has been deducted by bank as service charge month of January.
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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Question
a) Prepare an adjusted cash book for the month
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c) Given your knowledge in bank reconciliation statement, do you think digital
banking products like SMS alert and e-statements have rendered the use of
bank reconciliation statement irrelevant? Discuss
Transcribed Image Text: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.
1) An amount of GHC822 sent to the bank for deposit on January 31, 2019 does
not appear in the bank statement.
2) 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;
3) A note receivable amounting to GHC1, 588 has been collected by bank for the
company.
4) The bank statement shows that interest amounting to GHC50 has been earned
on average account balance during January.
5) The bank has charged GHC10 for the collection of a note.
6) A check of GHC100 deposited by the company has been charged back as NSF.
7) An amount of GHC25 has been deducted by bank as service charges for the
month of January.
8) 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.
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