B.
COM ASSIGNMENT 2
(a) What is the purpose of preparing a bank reconciliation statement?
(4marks)
(b) The following is the bank statement of Kakamega Retail Traders for the
month of October
1996:
Date Particulars Debit Credit Balance
1996 Sh. Sh. Sh.
October 1 Balance b/d 365,875
2 Cheque no. 63 31,000
334,875
2 Cheque no. 67 3,548
331,327
2 Cheque no. 65 13,000
318,327
2 Deposit 82,000
400,327
4 Cheque no. 69 6,000 394,327
4 Cheque no. 68 3,115 391,212
4 Cheque no. 64 51,000
340,212
4 Deposit 7,280
347,492
7 Cheque no. 70 7,000 340,492
7 Cheque no. 71 51,500
288,992
7 Deposit 36,100
325,092
8 Cheque no. 66 9,000 316,092
8 Deposit 28,000
344,092
October 9 Cheque no. 72 1,330 342,762
9 Cheque no. 73 6,250 336,512
9 Deposit 51,000
387,512
15 Cheque no. 74 2,800 384,712
15 Deposit 20,560
405,272
16 Cheque no. 75 65,000
340,272
16 Deposit 18,014
358,286
17 Deposit 34,500
392,786
19 Cheque no. 76 8,500
384,286
19 Deposit 42,750
427,036
21 Cheque no. 79 2,410 424,626
21 Cheque no. 77 12,506
412,120
21 Cheque no. 78 4,000 408,120
21 Cheque no. 81 6,500
401,620
21 Deposit 9,000
410,620
23 Cheque no. 82 16,240
394,380
23 Deposit 63,000
457,380
26 Cheque no. 84 1,500
455,880
26 Dividends 8,750 464,630
26 Deposit 62,500
527,130
28 Cheque no. 88 35,500
491,630
28 Standing order 10,400
481,230
(Insurance)
28 Cheque no. 85 27,000
454,230
28 Cheque no. 87 22,500
431,730
28 Deposit 13,025
444,755
31 Service charge 750 444,005
31 Deposit 28,050
472,055
The following is the bank column of the cashbook:
Date Particulars Debit Date Particulars Credit
1996 Sh. 1996 Sh.
October 1 Balance b/d 365,875 October 1 Cheque no. 65 13,000
1 Deposited at bank 7,280 1 Cheque no. 66
9,000
3 Deposited at bank 36,100 1 Cheque no. 67
3,548
5 Deposited at bank 28,000 2 Cheque no. 68
3,115
8 Deposited at bank 51,000 4 Cheque no. 69
6,000
10 Deposited at bank 20,560 5 Cheque no. 70
7,000
15 Deposited at bank 18,014 5 Cheque no. 71 51,500
15 Deposited at bank 34,500 7 Cheque no. 72
1,330
17 Deposited at bank 42,750 8 Cheque no. 73
6,250
19 Deposited at bank 15,700 10 Cheque no. 74
2,800
19 Deposited at bank 9,000 11 Cheque no. 75 65,000
22 Deposited at bank 36,000 15 Cheque no. 76
5,800
24 Deposited at bank 26,500 18 Cheque no. 77 12,506
27 Deposited at bank 13,025 19 Cheque no. 78
4,000
28 Deposited at bank 28,050 19 Cheque no. 79
2,410
29 Deposited at bank 171,010 19 Cheque no. 80 3,860
31 Deposited at bank 31,525 19 Cheque no. 81
6,500
22 Cheque no. 82 16,240
23 Cheque no. 815,000
26 Cheque no. 84 1,500
28 Cheque no. 85 27,000
28 Cheque no. 86 10,520
28 Cheque no. 87 22,500
28 Cheque no. 88 53,500
30 Cheque no. 89 2,500
31 Cheque no. 90 64,529
31 Cheque no. 91 15,500
31 Balance c/d 502,481
934,889 934,889
Notes:
1. The bank reconciliation on 30 September 1996 showed that one deposit
was in transit and two cheques had not yet been presented to the bank.
2. Deposits of Sh.62, 500 and Sh.36, 000 had been entered in the cashbook
as Sh.26, 500 and Sh.36, 000 and in the bank statement as Sh.62, 500
and Sh.63, 000, respectively.
3. A cheque from Mkulima for Sh.15, 700 was deposited on 18 October 1996
but was dishonored and the advice was received on 4 November 1996.
4. Counterfoils for cheques no. 76 and no. 88 showed they had been drawn
for Sh.5, 800 and Sh.33, 500 respectively.
Required:
a) A correct cashbook balance. (8 marks)
b) A bank reconciliation statement on 31 October 1996. (8
marks)
(Total: 20 marks)
