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Q1

KAMAU a sole Trader Received his bank Statement for the year ended December 2016.At that Date the Bank Balance was 70,650shs whereas his cashbook balance was sh 236,650 his Accountant investigated the Matter and Discovered the Following Discrepancies

Bank Charges of 300 sh had not being entered in the CashBook

Cheques drawn by Kamau Totalling sh 2250 had not yet being presented to the Bank

He had not Entered receipt of sh 2650 in his cashbook

The Bank Had not credited Kamau with receipt of ksh 9850 paid into the bank on 30 December 2016

Standing order Amounting Payment amounting to ksh 6200 had not being entered in the cashbook.

In the Cashbook Kamau had Entered a payment of sh 7490 as 7940

A cheque for ksh 1500 from a debtor had being returned by the Bank Marked refers to Drawer but had not being written in the cashbook.

Kamau had brought down the Opening Cashbook balance as ksh 32,925 as debit balance instead of a credit balance.

An old Cheque Payment Amounting sh 4400 had being written back in the cashbook but the bank had already honoured it

Some of Kamau Customer had agreed to settle their debt by paying direct into his bank, unfortunately the bank had credited some deposit amounting to ksh83250 to another Customer A/C however acting on Information from his debtor Kamau had actually Entered the receipt from the Debtor into his Cashbook.

Required

A statement showing Kamau Adjusted cashbook balance as at 31 December 2016. 10 (Marks)

The Bank Reconciliation Statement as at 31 December 2016. 10(Marks)

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