REVISION QUESTIONS ON FINAL ACCOUNT AND BANK RECONCILIATION STATEMENT

 

TOPIC 1: FINAL ACCOUNTS

1. The following Trial Balance was extracted from the books of Odebeodero
Nigeria Limited on 31st December, 2021.
	DR	CR
	N	N
Premises	150,000
Motor Vans	27,810
Capital 1st January, 2021		483,720
Advertising	3,810
Postage	4,140
Purchases	2,054,550
Electricity	2,730
Salaries	85,110
Tenement Rate	3,030
Telephone	1,020
Furniture	33,120
Sales		2,204,940
Returns	1,680	11,760
Bad Debts	780
Insurance	5,760
Commissions received		52,500
Debtors	146,460
Creditors		252,150
Cash in hand	10,560
Bank	113,760
Stock 1st January, 2021	360,750
	3,005,070	3,005,070
Additional information is as follows:
i.  The stock at 31st December, 2021 was N323,610
ii. Depreciation to be written off as follows:
Premises at 5 percent
6,000 of value of motor vans
10 percent off furniture
iii.  Prepaid rate N450, outstanding telephone N660, provide N9,000 for bad and doubtful debts.
Required:
(a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021.
(b) Statement of Financial Position as at that date.

 

2. The following Trial Balance was extracted from the books of Koduro Nigeria Limited on 31st December, 2021.

	DR	CR
	N	N
Premises	52,500
Motor Vans	9,734
Capital 1st January, 2021		169,305
Advertising	1,334
Postage	1,449
Purchases	719,093
Electricity	956
Salaries	29,789
Tenement Rate	1,061
Telephone	357
Furniture	11,592
Sales		771,729
Returns	588	4,116
Bad Debts	273
Insurance	2,016
Commissions received		18,375
Debtors	51,261
Creditors		88,253
Cash in hand	3,696
Bank	39,816
Stock 1st January, 2021	126,263
	1,051,778	1,051,778
Additional information is as follows:
i.  The stock at 31st December, 2021 was N113,264
ii. Depreciation to be written off as follows:
Premises at 5 percent
2,100 of value of motor vans
10 percent off furniture
iii.  Prepaid rate N158, outstanding telephone N231, provide N3,150 for bad and doubtful debts.
Required:
(a) Prepare Trading, Profit or Loss account for the year ended 31st December, 2021.
(b) Statement of Financial Position as at that date.

 

TOPIC 2: BANK RECONCILIATION STATEMENT

 

1. (a) Define Bank Reconciliation Statement and state the causes of bank reconciliation

         statement.

    (b) On 31^st December 2021, Foyegbe cash book showed a debit balance of N29,520.

          His bank statement showed a credit balance of N25,260.

          The reasons for the difference were follow:

i.                    A cheque of N1,960 was received and entered in the cash book but was not recorded in the bank statement.

ii.                  Unpresented cheques totalled N3,740.

iii.                The payment side of the cash book had been undercasted by N2,000.

iv.                Standing order for N1,260 appearing in the bank statement was yet to be posted in the cash book.

v.                  A bill of exchange of N1,340 had matured and the bank had paid on Olowonishaye`s  behalf but it had not been recorded in the cash book.

vi.                A withdrawal of N1,440 by Sogbae, another customer of the bank had been charged in error to Foyegbe account.

You are required to prepare:

           i.     Adjusted cash book

           ii.    Bank Reconciliation Statement.

 

2.  Ajimatanraeje Nigeria Limited has the following transactions in its cashbook and bank statements for January 2022.

	CASHBOOK
Lodgements:	N		Payments:			N
CHQ. 6789	28,000		CHQ. 123456			8,000
CHQ. 4591	24,000		CHQ.123457			12,000
CHQ. 4826	19,000		CHQ. 123458			15,000
CHQ. 4725	38,000		CHQ. 123459			25,000
CHQ.4228	18,000		CHQ. 123460			16,000
Cash	132,000		CHQ. 123461			3,000
			Balance C/d			180,000
	259,000					259,000
Balance B/d	180,000
		BANK STATEMENT
		DR N		CR N	BALANCE N
CHQ.123459		25,000			25,000
CHQ. 123458		15,000			40,000
CHQ. 4826				19,000	21,000
CHQ. 6789				28,000	7,000
CHQ. 123460		16,000			9,000
CHQ.4826 CONTRA		19,000			28,000
ICAN		500			28,500
COT		1,000			29,500
Commission		3,500			33,000
CHQ. 4228				18,000	15,000
CHQ. 123457		12,000			27,000
Cash				132,000	105,000

You are required to:

(a)     Prepare an adjusted cash book

(b)    Reconcile the adjusted cash book balance with the bank statement.

 

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