Response to the following:
1. Enter the following transactions in a petty cash book having analysis columns for stationery. Keep the book on the imperest system the amount of imperest being ksh 250.
The year 2017
Feb 1 petty cash in hand sh 250
1 paid bus fare shs 37, carriage sh 14
2 Paid bus fare sh 18, office expense sh 12
3 Bought stationary for sh 47
4 Paid carriage sh 19, bus fare sh 25
5 Bought stationery for sh 25
6 paid office expense shs 15
Balance the book as on Feb 6,2001
2. Mr Samuel Nzioka has given you the following balances extracted from his books as at Sept 2017.
Shs
Cash in hand 1,200
Cash at Bank 11,000
Stock 1.9.2011 21,000
Debtors 8,000
Creditors 10,000
Returns inward 500
Sales 56,000
Purchases 20,500
Capital 14,900
Salaries 4,000
Water and electricity 600
Postages 200
Drawings 900
Stock 30.9.1989 13,500
Furniture and fitting 7,500
Motor van 7,500
Loan (ICDC) 30,000
Rent received 1,200
Office rent 1,700
Required:
i) Prepare Nzioka's trial balance as at 30.9.2011
ii) Prepare his income statement for the month.
3. Write up three column cash book for Mr. Miruki from the details given blow, the balance off this cash book at the end of the month and show the discounts in the general ledger.
2017
Shs
July 1 Balance b/f cash 2,500
Bank 7,400
2 Bought goods by cheque 2,000
3 cash sales 1,800
5 Banked cash 2,000
6 Paid by cheque in each case cash discount received 3% A john sh 1,500, H Hofman sh 3,000, D Jackson sh 1,400.
7 Received by cheque in each case, discounts allowed 5% B. show sh 4,000, B.Benhim sh 3,000 J. Mathews sh 3,200
10 Bought office furniture by cheque sh 3,000
15 cash drawings sh 500
20 paid to A Adleman sh 800, cash lss 3
22 Received cash from A Smith sh 1,500 les 4%
30 Paid wages in cash sh 1,000
4. The following Bank statement was received by M. Muthee a trader on 31st 1990.
Debits Creditors Balance
Sh sh sh
Balance 8,400
Deposits 11,640 20,040
Deposits 1,745 21,785
Cheque No 716 7,200 14,585
Cheque No 717 1,360 13,225
Deposits 2,500 15,725
Cheque No 719 3,400 12,325
Bank charges 50 12,275
Cheque No 721 2,840 9,435
Unpaid cheque 4,250 5,185
Deposits 3,600 8,785
Cheque No 718 4,850 3,935
Standing order-rent 5,000 1,065
His cash book (bank column only) had the following entries for March 1990.
Cash Book (Bank column only)
Shs Shs
Balance b/f 8,400 Cheque No 716 7,200
Deposits 11,640 Cheque No 717 1,360
Deposits 1,745 Cheque No 718 4,850
Deposits 3,600 Cheque No 719 3,400
Deposits 4,285 Cheque No 720 2,610
Cheque No 721 2,840
Cheque No 722 3,180
You are informed that No error has been made in either the Bank statement or the cash book. You are required to complete and balance the cash book as at 31st March 1990 and prepare a Bank reconciliation statement.
Explain any three importance of a Bank reconciliation statement.