Topics

The Following is the summary of cash book (bank column only) of BF Company for the month of December, 2016

On examining the bank statement, you discover the following:

1. The opening balance should have been carried down as shs. 29,400/= instead of shs. 28,140/=
2. The debit balance as per bank pass book on December 31st, 2016 is shs. 2,480/=
3. Bank charges shs. 700/= is not shown in the cash book.
4. A cheque drawn by BF Company for shs 940/= has been entered as a receipt in the cash book.
5. Cheques issued but not presented for payment amount to shs. 12,280/=
6. The last bank pay-in-slip amounting to shs. 30,840/= is yet to be credited by the bank
7. Bank has wrongly debited the BF Company’s account by shs. 1,440/=
8. Cheque received from a customer mr. pesambili for shs 360/= was deposited but was later dishonoured by bank, while receipt and deposit were recorded in the cash book, dishounouring of the cheque was not recorded.

The following is a summary from the cash book of lake development corporation for March, 2105

The bank statement for the same month shows a balance of shs 955/=. On investigation you discover that:-

1. Cheque issued amounting to 2,680/= are still outstanding
2. A cheque for 785/= was debited by the bank in error to the company’s account.
3. A cheque for 340/= has been returned by the bank marked insufficient funds, but it has not beeen written back in the cash book.
4. A cheque drawn for 190/= has been entered in error as a receipt in the cash book.
5. A cheque of 1, 250/= has not yet been credited to the account by the bank.
6. The opening balance in the cash book should have been 5,280/= instead of 5,820/= brought forward

The cash book of ABC Ltd. Shows bank balance of shs. 24,115,000/= as on 31st December, 2014. This does not tally with the shs. 26,345,000/= balance of the bank pass book. On scrutiny, the following discrepancies were noted:

1. Pass book shows debits for bank charges as given below:
   30.11.2014 – 110,000/=
   10.12.2014 - 32,000/=
   22.12.2014 - 18,000/=
   The relevant debit advises have not reached the office of ABC Ltd.
2. Receipt side of the cash book was under cast by shs. 900,000/= on 20th December, 2014
3. Out of cheques amounting to shs. 76,910,000/= issued in December, 2014 cheques for shs. 72,300,000/= were encashed in December, 2014 and shs. 4,100,000/= in January, 2015 and balance in February, 2015.
4. A cheque for shs. 1,340,000/= was wrongly debited to the account by the bank
5. Dividend collected by the bankers amounted to shs. 2,100,000/= but this was not entered in the cash book
6. A cheque for shs. 3,200,000/= received from Mr. KP was deposited in the bank on 10th December, 2014. the bank returned the cheque as disnonoured on 28the December, 2014, but no entry was passed in the cash book.
7. A cheque drawn for shs. 340,000/= was wrongly entered in the cash book on the receipt side.

On 31 December 2018 the bank column of Macha cash book showed a debit balance of shs 1,500,000.
The monthly bank statement written up to 31 December 2018 showed a credit balance of shs 2,950,000.
On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book:

1. Dividends of shs 240,000 had been paid directly to the bank.
2. A credit transfer – Customs and VAT refund of shs 260,000 – had been collected by the bank.
3. Bank charges shs 30,000.
4. A direct debit of shs 70,000 for the RAC subscription had been paid by the bank.
5. A standing order of shs 200,000 for Macha loan repayment had been paid by the bank.
6. Macha deposit account balance of shs1,400,000 was transferred into his bank current account.

1. Two cheques drawn in favour of Massawe shs 250,000 and Kafanabo shs 290,000 had been entered in the cash book but had not been presented for payment.
2. Cash and cheques amounting to shs 690,000 had been paid into the bank on 31 December 2018 but were not credited by the bank until 2 January 2019.

In the draft accounts for the year ended 31 October 2019 of Marijani, garage proprietor, the balance at bank according to the cash book was shs 894,680 in hand. Subsequently the following discoveries were made:

1. Cheque number 176276 dated 3 September 2019 for shs 310,840 in favour of Kurwa Limited has been correctly recorded in the bank statement, but included in the cash book payments as shs 301,840.
2. Bank commission charged of shs 169,560 and bank interest charged of shs 109,100 have been entered in the bank statement on 23 October 2019, but not included in the cash book.
3. The recently received bank statement shows that a cheque for shs 29,310 received from Makaranga and credited in the bank statements on 9 October 2019 has now been dishonoured and debited in the bank statement on 26 October 2019. The only entry in the cash book for this cheque records its receipt on 8 October 2019.
4. Cheque number 177145 for shs 15,100 has been recorded twice as a credit in the cash book.
5. Amounts received in the last few days of October 2019 totalling shs1,895,600 and recorded in the cash book have not been included in the bank statements until 2 November 2019.
6. Cheques paid according to the cash book during October 2019 and totaling shs 395,800 were not presented for payment to the bank until November 2019.
7. Traders’ credits totalling shs 210,100 have been credited in the bank statement on 26 October 2019, but not yet recorded in the cash book.
8. A standing order payment of shs 15,000 on 17 October 2019 to Makongo transporters has been recorded in the bank statement but is not mentioned in the cash book.