accounting question and need the explanation and answer to help me learn.
Bola received his bank statement for the month ending 31st December 1998. At the date his balance at bank amounted to #14,130 whereas his cash book showed a balance of #47,330.
On investigation, the following discrepancies were discovered:
a. Bank charges of #60 had not been entered in the cash book .
b. Cheques drawn by bola and totalling #450 had not yet been presented to the bank.
c. Bola had not entered receipts of #530 in his cash book.
d. The bank had not credited Bola with receipt of #1,970 paid into the bank on 31st December 1998.
e. Standing order payments amounting to #1,240 had not been entered in the cash book.
f. Bola had entered a payment of #560 in his cash book as #650.
g. A cheque received for #300 from a debtor had been returned by the bank marked “refer to drawer” but this had not been written back in the cash book.
h. Bola had brought down his opening cash book balance of #6,585 as a debit balance instead of a credit balance.
i. Some of Bola ‘s customers had agreed to settle debts by direct debit. Unfortunately, the bank had credited some direct debits amounting to #17,530 to another customer’s account.
You are required to prepare
i. A statement showing the adjusted cash book balance.
ii. A bank reconciliation statement as at 31st December 1998.
Requirements: | .doc file