Question

Question 3 H. Angula, for whom you work as a trainee accountant, has provided you with the following bank statement and bank account details in respect of the month ended 31 May 2017. STATEMENT OF ACCOUNT-YOUR BANK LTD Statement date-31 May 2017. Account No 7654321 Date Debit Credit Balance Particulars N$ N$ NS 27 970 Cr 26 720 Cr 7070 33 790 Cr 33 730 Cr 32 720 Cr 2 330 35 050 Cr 01-May-17 Balance forward 03-May-17 Cheque 596 1 250 03-May-17 Lodgment 60 I 1 010 06-May-17 Cheque 597 06-May-17 Direct debit 12-May-17 Credit transfer 13-May-17 Cheque 600 710 34 340Cr 28 326 Cr 4 500 32 826 Cr 23 824 Cr 23 613 Cr 6 014 14-May-17 Cheque 601 16-May-17 Lodgment 19-May-17 Cheque 599 23-May-17 Bank charges for May 2017 25-May-17 Quarterly interest received 27-May-17 Dishonoured cheque 9002 211 31 23 644 Cr 22 844 Cr 9799 Cr 7 275 Cr 800 13 045 27-May-17 Cheque 598 2 524 30-May-17 Cheque 603 31-May-17 Lodgment 31-May-17 Standing order: rent third quarter 2017 13 500 7 250 14 525 Cr 1 025 Cr The books and records of H. Angula show the followings transactions through the bank account for the month of May 2017: ReceiptsN$ Date Payments NS 4/05/17 Cheque 597 Date 1/05/17 Balance 33 790 60 6/05/17 | e 598 13 000 9 002 10/05/17 Cheque 599 11/05/17 710 Cheque 600 12/05/17Cheque 601 4 500 18/05/17 Cheque 602 6014 12/05/17 Deposit 2 330 5 949 16/05/17 Deposit 2 524 20/05/17 Cheque 603 42 28/05/17 Deposit 7350 30/05/17Cheque 604 14779 4110 31/05/17 Balance 31/05/17 Deposit 52 080 52 080 14 779 1/6/2017 Balance You are required to: i. Reconcile the opening balance as per the cash book to the balance (5 Marks) as per the bank statement. Prepare the adjusted cash book for the month of May 2017. ii. (12 Marks) ii. Prepare a statement on 31 May 2017, reconciling the adjusted cash (8 Marks) book with the bank statement balance. (Total 25 Marks)

Answer 1

1)
Opening Balance of Cash Book	33790
Less: Deposit in transit	-7070
Add: Cheques outstanding	1250
Opening Bank Statement balance	27970
RECONCILIATION OF CLOSING BALANCE:
C. Balance of Cash Book	14779
Less: short credit cheq 598	-45
Add:cheques outstanding	5991
Less:excess debit of deposit	-100
Less:deposit in transit	-4110
Less:direct debit on 6th	-1010
Less: bank charges	-211
Add: bank interest recd.	31
Less: deposit dishonoured	-800
Less: direct rent paid by bank	-13500
C. Balance of Bank Statement	1025
2) Adjusted Cash Book:
Prior adjustment Closing Balance	14779
Less: short credit cheq 598	-45
Less:excess debit of deposit	-100
Less:direct debit on 6th	-1010
Less: bank charges	-211
Add: bank interest recd.	31
Less: deposit dishonoured	-800
Less: direct rent paid by bank	-13500
Adjusted Closing Balance	-856
3)
Adjusted Closing Balance	-856
Add: Outstanding cheques	5991	(5949+42)
Less: Deposits in transit	-4110
Bank Statement Closing Balance	1025