Question

BBK Ltd operates two bank accounts with its banker, account number 1 and account number 2. as at 31 March 2018, the balances as per the bank statement and the cash book were as follows: Account Balance as per bank statement Balance as per cash book Sh. Sh. Number 1 323,600(Cr) 34,000(Dr) Number 2 156,400(Dr) 277,600(Dr) 3 Investigations revealed the following 1. Cheques lodged but not yet credited: Sh. Account No. 1 80,000 Account No. 2 56,000 2. Cheque No.F301 for Sh. 8,000 deposited into account No. 2 was dishonored but this has not been reflected in the cash book. 3. A cheque No. M420 for Sh. 8,800 paid direct into bank account No. 1 has not been recorded in the cash book. 4. A cheque No. K341 for Sh. 6,400 was deposited into account No. 2 but this was wrongly recorded in the cash book as Sh. 8,000 5. A cheque No. A210 for Sh. 29,200 paid out from account No. 1 and recorded as such in the cash book was erroneously paid out of account No. 2 by the bank. 6. A cheque No. B308 for Sh 12,800 paid out from account No. 2 was erroneously entered in account No. 1 in the cash book. 7. A transfer of Sh. 400,000 from account No. 1 to account No. 2 had been entered in the cash book but the bank had not been instructed to effect the transfer. 8. A standing order payment of Sh. 4,000 from account No. 2 had not been recorded in the cash book. 9. A cheque No. B348 for Sh. 8,400 paid from account No. 2 was incorrectly entered in the cash book as Sh. 4,800. 10. Bank charges not yet entered in the cash book are Sh. 1,200 for account No. 1 and Sh. 1,600 for account No. 2. 11. A cheque of No. D720 for Sh. 80,000 received in respect of account No. 2 and subsequently credited to account No. 2 by the bank, was incorrectly entered in account No. 1 in the cash book. 12. A cheque No. H781 for Sh. 7,200 received in respect of account No. 2 was incorrectly recorded in the cash book as Sh. 6,800. 13. There was an unpresented cheque of Sh. 2,400 in respect of account No. 2. Required: (i) Adjusted cash book for each of the two accounts. (8 Marks) (ii) Bank reconciliation statement for each of the two accounts, for the month of March 2018

Answer 1

Answer:

Such a big question........cant answer!!!!!!!!!!

Answer 2

Answer:

Bank Reconciliation Statement is a statement that is prepared to reconcile the differences between bank balance as per the Cash Book and the Pass Book on a particular date. It is a statement that explains the reasons of differences between the bank balance shown by the bank statement and the bank balance shown by the Cash Book.