Question Tag: Credit Transfers

The cash book of Lawra Ltd as at 31 December 2023 shows a balance of GH¢36,900, which does not match the bank statement balance of GH¢41,100. Investigation revealed the following discrepancies:

1. Cheques received of GH¢104,000, GH¢10,000, and GH¢24,900 were still in the business drawer.

2. Standing orders for electricity charges (GH¢2,400) and insurance (GH¢3,600) were paid by the bank but not recorded in the cash book.

3. The bank charged GH¢300 for a cheque book issued to Lawra Ltd.

4. The bank incorrectly debited GH¢9,910 to Lawra Ltd’s account, which was intended for another customer.

5. A credit transfer of GH¢10,000 was received but not recorded in the cash book.

6. A cheque for GH¢140,000 drawn by Lawra Ltd was correctly recorded in the cash book but was debited as GH¢14,000 by the bank.

7. The following cheques, paid in November 2023, remained unpresented:

   Cheque Number	Amount (GH¢)
   0000111	4,000
   0000117	10,000
   0000120	9,310

Required:

i) Prepare the adjusted cash book for Lawra Ltd as at 31 December 2023.

ii) Prepare a bank reconciliation statement reconciling the adjusted cash book balance to the bank statement balance.