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The following is a summary of the cash book of Azimio Ltd. for the year ended 31 May 2014:Subsequent investigations reveal that:1. A page of the receipt side of the cash book has been under cast by Sh.200, 000.2. The following transactions appearing on the bank statement have not yet been entered in the cashbook:- Dividend received on a trade investment Sh.1, 147,000.- Hire purchase repayments for 12 months at Sh.55, 000 per month.- Interest for the half year to 30 November 2014 on a loan of Sh.20, 000,000 at 11 percent perannum.3. Bank charges of Sh. 143,000 shown on the bank statement have not yet been entered in the cashbook.4. A cheque received from a customer for Sh.180, 000 was returned by the bank unpaid and no entryhas been made in the cash book for this transaction.5. The company owes Sh.430, 000 for electricity consumed in the month of May 2014.6. A cheque for Sh.82, 000 has been debited to the company's account in error by the bank.7. A cheque drawn for Sh.98, 000 has been entered in the cash book as Sh.89, 000 and anotherone-drawn for Sh.230, 000 has been entered as a receipt.8. A transposition error occurred in the opening balance of the cash book. The openingbalance should have been brought down as Sh.850, 000 instead of Sh.805, 000.9. Cheques paid to suppliers totalling Sh.630, 000 have not yet been presented at the bank, whiledeposits totaling Sh.580, 000 made on 31 May 2014 have not yet been credited to the company'saccount.10. The balance as per the bank statement is an overdraft of Sh.870, 000.Required:(i) Adjusted cash book balance.(ii) Bank reconciliation statement as at 31 May 2014.
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Date posted: May 15, 2019 . Answers (1)
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