Q # 01. The following information has been extracted from the accounting records of the four companies:
(Marks 04)

Rupees Rupees Rupees Rupees
Balance per bank statement (a) 9,200 275 2,200
Deposits in transit 600 (b) 50 125
Outstanding Cheques 1,500 1,000 (c) 75
Balance per books 3,600 9,400 225 (d)

Required: Compute the correct amounts to replace missing figures in the above table.

Q # 02.The accountant of the ABC & Co is attempting to reconcile the balance shown in the cash book with that appearing on the bank statements. According to the cash book the balance at the bank as at May 31, 2006 was Rs. 19,000 whilst the bank statement disclosed an overdrawn amount Rs. 4,700.

Upon investigation, the Accountant identified the following discrepancies:

1) Cheques paid to Summer Limited for Rs.3, 400 have been entered in the cash book as Rs. 4, 300.
2) Cash paid into the bank for Rs. 1,000 had been entered in the cash book as Rs.900.
3) A transfer of Rs. 15,000 to the Midlands Saving Bank had not been entered in the cash book.
4) A receipt of Rs. 100 shown on the bank statement had not been entered in the cash book.
5) Cheques drawn amounting to Rs. 400 had not been paid into the bank.
6) The cash book balance had been incorrectly brought down at June 1, 2005 as a debit balance of Rs.12,000 instead of a debit balance of Rs 11,000.
7) Bank charges of Rs. 200 do not appear in the cash book.
8) Receipts of Rs. 9,000 paid into the bank on May 31, 2006 did not appear on the bank statement until June 1, 2006.
9) A standing order payment of Rs. 300 had not been entered in the cash book.
10) Cheques of Rs. 500 previously received and paid into the bank had been returned by the subscriber’s bank marked ‘account closed’
11) The bank received directly Rs. 1,000 from an anonymous subscriber.
12) Cheques paid into the bank had been incorrectly totaled. The total amount should have been Rs. 1,700 instead of Rs. 1,500.

Required:

i) Correct the errors in the cash book.
ii) Prepare a bank reconciliation statement as at May 31, 2006.

Hi gege

If you are creating financial statements to secure loans or obtain credit, maybe you should consider using a Statement of Financial Condition, this is less complicated than a balance sheet, assets and liabilities are reported at estimated fair market value, and your net worth is the difference between total assets and total liabilities. But if you insist on using corporate style financial statements for a partnership buy quick books, its a great investment, easy to follow, and prints out financial statements based on the information you input.

Hope I answered your question

adaclarke gave a good and precise answer!
Good work!