timer Asked: Apr 13th, 2020

Question Description

A detailed explanation on how to do bank reconciliation for the question posted, and to adjust the cash book

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DAYSTAR UNIVERISITY ACC111 FINANCIAL ACCOUNTING ASSIGNMENT 1 Assignment question (a) State and briefly explain five reasons for the difference in balances between the cash book and the bank statement. (5 marks) (b) On 30th June, 2010, the cash book of Undugu ltd showed a balance of Sh 16,600 while the bank statement showed a balance of Sh 16,170. On comparison of the bank statement and the cash book, the following information was revealed: (i) Bank Charges of Sh 100 had been recorded in the cash book. (ii) A debtor, Amina, deposited Sh 1,000 directly into the bank. No record of this had been made in the cash book. (iii) The bank statement showed dividends collected amounting to Sh 1,280. (iv) Cheques amounting to Sh 3,000 had not been presented for payment. (v) Cheques deposited into the bank account amounting to Sh 4,000 had not been credited by the bank. (vi) A standing order of Sh 1,000 had not been recorded in the cash book. (vii) A cheque of Sh 8,140 deposited into the bank was recorded in the cashbook as sh 8,410. (viii) The bank had erroneously debited the bank statement by Sh 340. Required: (a) Updated cashbook ( 10 marks) (b) Bank reconciliation statement ( 5marks) ...
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