Under this method, the cash book will be adjusted before the bank reconciliation statement is prepared. The balance of the adjusted cash book will be used for the preparation of the reconciliation statement.
ADJUSTED CASH BOOK
Balance b/f XX
Payment overcast XX
Credit transfer XX
Receipts under cast XX
Interest received XX
Bank charges XX
Interest payment XX
Standing order XX
Dishonored cheques XX
Receipts overcast XX
Payment under cast XX
Direct debits XX
Balance c/d XX
BANK RECONCILIATION STATEMENT N
Balance as per adjusted cash book xx
Add unpresented cheques xx
Less uncredited cheques xx
Balance as per bank statement xx
Using the illustration in the second method:
ADJUSTED CASH BOOK
Balance b/f 3,800
Payment overcast 180
Credit transfer 200
Receipts under cast 20
Unrecorded cheques 20
Bank charges 40
Standing order 60
Dishonored cheques 100
Receipts overcast 200
Capital bank 3,000
Balance c/d 820
BANK RECONCILIATION STATEMENT AS AT 31ST JULY, 1999
Balance as per adjusted cash book 820
Add unpresented cheques 80
Less uncredited cheques 1,800
Bank errors 40 1,840
Overdraft as per bank statement (940)
Assignment: T. EMEKA maintains a business account with 2nd bank Nigeria limited, the bank received for the month of march showed a balance of N14,265 to his credit while according to his cash book, he should be having N 13,380. Subsequent investigation revealed the following:
a. Two cheques A000111 for N3,400and X222419 for N6,000 deposited to the bank on 28th march were not credited by the bank
b. A cheque of N3,000 received from a customer in full settlement of a debt N3,300 had been entered into the cash book at the full value of the debt.
c. A cheque for N6,500 issued to Jango Ltd. Had not been presented for payment.
d. Dividend of N650 from PZ had been paid direct into the bank.
e. The bank deducted a total of N125 as its charges.
f. The bank had credited a cheque of N3, 560 of V. Amaka in error to T. Emeka account.
You are required to prepare:
a. Adjusted cash book
b. Bank reconciliation statement.
Note: submit into my email [email protected] with your full name and class.