The following is a summary from the cash book of Ato Ltd for July 2020:
GH¢
Opening balance 3,060
Receipts 46,208
Payments (46,010)
Closing balance 3,258
On investigation, it was discovered that:
Bank charges of GH¢30 shown on the bank statement have not been entered in the cash book.
A cheque drawn for GH¢220 to pay a supplier has been entered in the cash book as a receipt.
A cheque from a customer for GH¢240, which was banked (and included above in receipts), has been returned by the bank, but this has not been adjusted in the company’s books.
An error occurred in the opening balance of the cash book. The correct amount was GH¢2,700.
Cheques totalling GH¢528 have been sent by post to suppliers but were not presented to the company’s bank until August 2020
The last page of a bank account paying-in book shows a deposit of GH¢2,080 which was not credited to the account by the bank until 1st August 2020
The company’s bank statement at 31st July 2020 shows a balance of GH¢636.
Required:
Demonstrate any adjustments needed to the company’s accounting records.
Prepare a Bank Reconciliation Statement as at 31st July 2020.