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    The cash book of Kofi Brokeman Ltd had discrepancies when compared to the bank statement. [1] Investigations revealed dividend income, a customer payment, and bank charges that were not recorded in the cash book. [2] Standing orders for rates and insurance were also omitted from the cash book. [3] One cheque paid and one received were not properly recorded. [4] A cheque was incorrectly debited by the bank. [5] To reconcile, the adjusted cash book and bank reconciliation statement lists corrections for the unrecorded items and incorrectly processed cheque.

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    The cash book of Kofi Brokeman Ltd had discrepancies when compared to the bank statement. [1] Investigations revealed dividend income, a customer payment, and bank charges that were not recorded in the cash book. [2] Standing orders for rates and insurance were also omitted from the cash book. [3] One cheque paid and one received were not properly recorded. [4] A cheque was incorrectly debited by the bank. [5] To reconcile, the adjusted cash book and bank reconciliation statement lists corrections for the unrecorded items and incorrectly processed cheque.

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    © All Rights Reserved
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    7 views3 pages

    Question On Brs

    Uploaded by

    Farah
    The cash book of Kofi Brokeman Ltd had discrepancies when compared to the bank statement. [1] Investigations revealed dividend income, a customer payment, and bank charges that were not recorded in the cash book. [2] Standing orders for rates and insurance were also omitted from the cash book. [3] One cheque paid and one received were not properly recorded. [4] A cheque was incorrectly debited by the bank. [5] To reconcile, the adjusted cash book and bank reconciliation statement lists corrections for the unrecorded items and incorrectly processed cheque.

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    of 3

    QUESTION ON BRS

    The cash book of Kofi Brokeman Ltd for the year ending 31st December 2016 is as follows:

    GHS GHS

    Opening bal 4,962

    Receipts: Payments:

    Cheque No. 248296 from Sir Kwakwa 166,239 Cheque No. 182306 to Dawadawa Ltd 150205

    Cheque No. 188098 from Ghana Post Cheque No. 182307 to Makosah
    277,065 200,000

    Cheque No. 155812 from Fosu Ltd 4860 Cheque No. 128908 to Ntow Ltd 4,305

    Cheque No. 394504 from Santana Ltd 349,270 Cheque No. 182309 to Data link 300,000

    Cheque No. 112001 from Kofas Media 200,000 Cheque No. 182310 to Oga Ltd 295,695

    Closing balance 52,191

    1,002,396 1,002,396

    Investigations of the records for the period revealed the following information:

    (i) A dividend of GHC400 on shares in GT2 Ltd was paid direct to bank account and no entry was
    made in the company’s cash book.

    (ii) An amount of GHC4,887 received from a customer by credit transfer during the period had not
    been recorded in the cash book.

    (iii) Bank charges of GHC1,356 shown in the bank statement had not been entered in the cash book.

    (iv) Standing orders entered in the bank statement had been omitted from the cash book in respect of
    rates to the Oman District Assembly, of GHC3,456 and insurance of GHC450.

    (v) Cheque No. 182308 paid to Ntow Ltd had not been presented at the bank and cheque No. 155812
    from Fosu Ltd and deposited into the bank account had not been credited to the company’s account.

    (vi) A cheque for GHC714 had been debited to the company’s account in error by the bank.

    Required:

    Prepare a Bank Reconciliation Statement as at 31st December 2016 together with a corrected Cash
    Book.
    SOLUTION TO BRS

    Kofi Brokeman Ltd


    Adjusted Cash Book for the period ending 31st December, 2016
    GHS GHS
    Bal as per cash book 52,191
    Add: Dividend received 400
    Credit transfer 4887
    57,478
    Less: Bank charges 1356
    Standing Order (3456 + 450) 3906 5262
    Bal as per adjusted cash book 52216

    ORRRRRRRRRRRRRRRR

    Kofi Brokeman Ltd


    Adjusted Cash Book for the period ending 31st December, 2016
    Bal b/f 52191 Bank charges 1356
    Dividend 400 Standing orders 3456
    Credit transfer 4887 450
    Bal c/d 52216
    57478 57478
    Bal b/d 52216

    Kofi Brokeman Ltd


    Bank Reconciliation Statements as at 31st December, 2016

    GHS GHS

    Balance as per adjusted cash book 52216

    Add: Unpresented Cheques 4305

    56521

    Less: Uncredited Cheques 4860


    Cheques debited in error 714 5574

    Balance as per Bank Statement 50947

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