Momoh enterprise cashbook showed a debit balance of Le4,500 on December 31, 2014. Further examination revealed the following:
– A direct debit of Le350 for subscription had been paid by the bank
– Bank charges of Le500 had not been reflected in the cash book
– Payment settled by standing orders were omitted from the cash book; electricity bill Le70, insurance Le100 and medical bill Le120.
– A dividend of Le320 paid directly into the bank had not been entered in the cash book
– It was discovered that the cash book balance brought down was undercast by Le180.
– Cheques amounting to Le4,800 issued had not been presented for payment
– Cheques amounting to Le1990 paid into the bank had not yet been credited
You are required to prepare;
(a) The revised cash book
(b) The bank reconciliation statement as at December 31, 2014
Explanation
Momoh Enterprise
Received Cash Book
|
31/12/14 Le |
31/12/14 Le Subscription 350 Bank charges 500 Electricity bill 70 Insurance 100 Medical bill 120 Balance c/d 3,860 5,000 |
(b) Momoh Enterprise Bank Reconciliation statement
N
Balance as per revised cashbook 3,860
Add: unpresented cheques 4,800
8,660
Less: uncredited cheques 1,990
Bal. as per bank statement 6,670