WAEC Accounting 2022 Theory — Question 13

5. FINANCIAL ACCOUNTING PRACTICE The cash book of Dupe Enterprises showed an overdrawn balance of #216,126 and her bank statement also showed #905,625 overdrawn. On 31/12/2016, a detailed examination of the records showed the following differences: i. A cheque drawn for #697,550 had been entered in the cash book as #365,050 ii. A standing order of #420,000 and bank charges of #8,750 entered in the bank statement had not been recorded in the cash book iii. Bank lodgement of #1,922,375 on 27th December 2016 has not been credited by the bank iv. Dividend received of #315,000 had been recorded in the bank but not entered in the cash book v. Cheques paid to suppliers totaling #1,165,500 has not been presented for payment vi. A cheque for #700,000 received from Tunde was dishonoured by the bank but no entry had been made in the cash book vii. A cheque of #256,813 received from a customer was entered as a payment in the cash book viii. A cheque for #350,000 recorded in Dupe Enterprises cash book had been drawn by the bank to Dudu Enterprises account ix. An amount of #1,050,000 received from a customer was paid directly to Dupe Enterprises account but no entry was made in the cash book. (a) Prepare Dupe Enterprises Adjusted Cash Book. (b) Prepare the Bank Reconciliation Statement as at 31st December 2016.