On 31 December 2016, the bank column of the cash book of Aminata Enterprise showed a debit balance of D48,500. However, the bank statement showed a credit balance of D54,900 on the same date. A detailed comparison of entries revealed the following;
i. customer’s cheques amounting to D8.450 had not been credited by the bank as at 31/12/2016.
ii. Cheques amounting to D8,850 had not been presented for payment as at 31/12/2016
iii. Bank charges of D1,000 and interest on investments of D2,500 collected by the banker appeared only in the bank statement.
iv. On 30/12/2016, there was a wrong credit of D3,000 in the bank statement.
v. Kesse Enterprise, a customer, had paid into the bank directly a sum of D3,000 on 29th December 2016. This had not been recorded in the cash book.
vi. A cheque for D2,000 received from Jallo Enterprises, a customer, which was deposited had been returned unpaid. This had not been entered in the cash book.
You are required to:
(a) Write up the adjusted cash book.
(b) Prepare a bank reconciliation statement as at 31/12/ 2016.
Explanation
AMINATA ENTERPRISE
| D | D |
| 31/12/16 Balance b/d 48,500 31/12/16 Interest received 2,500 31/12/19 Kesse enterprise 3,000 54,000 Balance b/d 51,000 |
31/12/16 Bank charges 1,000 31/12/16 Jallo enterprise 2,000 31/12/16 Balance c/d 51,000 54,000 |
Bank reconciliation statement as at 31/12/2016
Balance as per adjusted cashbook 51,000
Add: Unpresented cheques 8850
Wrong credit in the bank statement 3500 12,350
63,350
Less: Uncredited cheques 8,450
Balance as per bank statement 54,900