WAEC Accounting 2016 Theory — Question 5

SECTION B: FINANCIAL ACCOUNTING PRACTICE 5. Momoh enterprise cash book showed a debit balance of Le 4,500 on December 31, 2014. Further explanation revealed the following: (i) A direct debit of Le350 for subscription had been paid by the bank. (ii) Bank charges of Le500 had not been reflected in the cash book. (iii) Payment settled by standing orders were omitted from the cash book: electricity bill Le70, insurance Le120 and medical bill Le320. (iv) A dividend of Le320 paid directly into the bank had not been entered into the cash book (v) It was discovered that the cash book balance brought down was undercast by Le180. (vi) Cheques amounting to Le4,800 issued had not been presented for payment. (vii) Cheques amounting to Le1990 paid into the bank had not yet been credited. You are required to prepare: (a) The revised cash book; (b) Bank reconciliation statement as at December 31, 2014.