Question

Question 4 On 31* December 2019 Oklu's cash book showed a debit balance of Ghc14,760. His bank statement showed a balance of Ghc13,250. The reason for the difference is as follows: a. A cheques of Ghc980 was received and entered in the cash book but not recorded in the bank statement b. Unpresented cheque totaling Ghc1,870 C. The payment side of the cash book had been undercast by Ghc1,000 d. Standing order Ghc630 had not been entered in the cash book e. A bill of exchange of Ghc670 had matured and the bank had paid on his behalf but it had not been recorded in the cash book f. Dividend credited to his account by the bank Ghc620 had not been recorded in the cash book 8. A payment of Ghc720 by Akoto had been charged in error to Oklu's account by the bank You are required to: a. Adjust the cash book (EV:8) b. Prepare the Bank reconciliation statement (EV:8) c. Using suitable numerical figures of your choice explain how the straight line formula can be used to compute for depreciation for a period when there is a residual value and when there is no residual value. (EV:9)

Answer 1

Adjusted Cash book
Particulars	Amount (Ghc)	Amount (Ghc)
	Cash book as on 31.12.2019		14,760.00
Add:	Payment side of cash book undercasted	1,000.00
	Dividend credited	620.00	1,620.00
Less:	Standing order	630.00
	Payment error	940.00
	Bill of Exchange matured	670.00	2,240.00
Adjusted Cash book		14,140.00
Bank Reconcilation Statement
Particulars	Amount (Ghc)	Amount (Ghc)
	Balance as per Bank Statement		13,250.00
Add:	Unpresented Cheque	1,870.00	1,870.00
Less:	Cheque received but not recorded in Bank statement	980.00	980.00
Balance as per Adjusted Cash book		14,140.00

Depriciation using Straight line:

a) Cost of Assests - Residual Value/ Useful life of Assets

b) Cost of Assests / Useful life of Assets

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