Project One:

Bank Reconciliation Process

Saba’s Cash Book at 30th November 2007 showed an overdrawn position of Br
2,118 although her bank statement showed only Br 3,630 overdrawn. Detailed
examination of the two records revealed the following:
a. The debit side of the cash book had been understated by Br 300. Error of
recording of collection of accounts receivable.
b. A check for Br 1,560 in favor of Z Suppliers Ltd had been omitted by the
bank from its statement, the check having been debited to another
customer’s account.
c. A check for Br 182 drawn in payment of the telephone expense account had
been entered in the cash book as Br 128 but was shown correctly on the bank
statement.
d. A check for Br 210 from customer on account having been paid into the
bank was dishonored and shown as such on the bank statement although no
entry relating to the dishonor had been made in the cash book.
e. The bank had debited a check for Br 126 o Saba’s account in error; it should
have been debited by them to Sheba’s account.
f. A divided of Br 90 on Kay’s holding of Ordinary shares has been paid direct
to her bank account and no entry made in the cash book.
g. Check totaling Br 1,260 drawn on 29th November had not been presented for
payment.
h. Deposit in transit Nov 30 totaled Br 1,080.
i. Interest amounting to Br 228 had been debited by the bank but not entered in
the cash book.

Required:
A. Prepare Bank Reconciliation for Saba Company at Nov 30, 2007.
B. Prepare the general journal entries necessary to bring the cash in bank into
agreement with the adjustment.
Project two
1. Tola PLC is a company which is established for the manufacturing &
distribution of long-base vehicles. The cash book of the enterprise has
shown a balance of Br 13,115 on May 31,2015. At the same date, the bank
statement balance of the business account was Br 13,755.
The difference that was accounted for the two balances was as follows:
A. A deposit of May 31,2015 Br 8,000 recorded on bank statement on June
3,2015
B. A cheque written for Ato Messay, a customer of Tola PLC, was withdrawn
from bank on June 6,2015 Br 3,500
C. A bank transfer letter written for the payment of electricity in May 2015 of
Br 7,250 had been transferred by the bank in June 2015
D. A bank service charge of Br 500 was not received by depositor
E. A cheque deposit of Br 6,330 which was received from the customer is
returned by the bank as no sufficient fund (NSF)
F. The credit advice of Br 4,720 made by Ato Tola’s customer for the
settlement of telephone service was not given to Tola’s PLC
Required tasks

Task one: Prepare bank reconciliation as at May 31,2015

Task two: Prepare the necessary adjusting journal entries

Project three
Given: Ebtoto trading has recived its bank statement for the month ended
meskerem 30, 2012 from bank. At the date its balance at the bank amounted birr
241300 whereas company cash book showed a balance of br. 150720. The
accountant investigates the matter and discovered the following difference:
1. Bank service charge br. 600 had not been entered in the cash book
2. Cheque drown by entoto trading totaling with receipt of meskerem 30 for br.
4424 had not yet been presented to the bank
3. Entoto trading had not entered a note receivable of br. 5300 in its cash book.
4. The bank had not credited the trading with receipt of meskerem30 for br.
97700 made in to the bank on tikimt1.
5. Entoto trading had entered a utility expanse payment of br. 5600 in its cash
book as br. 6500.
6. A check received for borr 3000 from a debtor had been returned by the bank
as NSF.
7. A dividend of birr 90000 on entoto trading holding of shares has been paid
direct to its bank account and no entry made in the cash book.
8. Interest amounting to br. 912656 had been credited by bank but not entered
in the cash book.
Required
Task 3.1 prepare bank reconciliation statement for the month of meskerem 2012
Task 3.2 record the necessary journal entries