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QUESTION TWO On 31st December, 2013, the bank column for Ewhene cash book showed a debit balance of GHC461,000. On the examination of the cash book and the bank statement, you find the following: (a) Cheques amounting to GHC630,000 which were issued to creditors and entered in the cash book before 31st December, 2014, were not presented to the bank for payment until after that date. (b) Cheques amounting to GHC250,000 had been recorded in the cash book as having been paid into the bank account on 31sDecember, 2014 but were not entered in the bank statement. (c) A cheque for GHC73,000 paid into the bank had been dishonoured prior to 31st December, 2015 but no records of this fact appeared in the cash book. (d) A dividend GHC38,000 paid direct to the bank has not yet been recorded in the cash book. (e) Bank interest and charges amounting to GHC42,000 has been charged in the bank statement but not entered in the cash book. (f) No entry has been made in the cash book for trade subscription of GHC10,000 paid bybankers order in November, 2015. Required i. Make appropriate adjustments in the cash book bringing down the adjusted cash book balance.12 marks Prepare a statement reconciling the adjustment shown in the cash book with the balance of the bank statement.8 marks

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