Reference no: EM132966243

Question -

(a) Sunhil's cash book showed a bank overdraft of £6,250 as at 30 April 2021. After comparing his cash book to his bank statement, he discovered the following:

(i) The following standing orders were not recorded in the cash book:

Subscriptions £40

Rent £550

(ii) Deposits of £12,390 had not cleared the bank as at 30 April 2021.

(iii) Bank charges of £11 have been entered twice in the cash book.

(iv) Cheque payments in the cash book of £17,640 had not been presented to the bank by 30 April 2021.

(v) Sunhil had brought forward the balance on his bank account at 1 April 2021 as a favourable balance of £2,100, instead of an overdraft of £2,100.

Required - Adjust the cash book balance as necessary and produce a bank reconciliation as at 30 April 2021 identifying the balance per the bank statement.

(b) The difference on the trial balance in the records of The Village bakery was entered into a suspense account. The following errors have since been found:

(i) The purchases day book was totalled as £214,300, but it should have been £213,400.

(ii) £700 paid to Paul Mason had not been entered into his supplier account.

(iii) £630 paid for advertising was omitted from the advertising account in the general ledger.

(iv) £250 paid for stationery was posted to the office equipment account.

(v) £2,000 received from Mary Rover was posted to the debit side of her customer account.

(vi) A sale of £2,450 to Hans Durling was recorded as £4,250 and posted to Hamish Durling's account. Note: Sales and purchases ledger control accounts are not maintained in the general ledger.

Required -

Identify which ledger accounts would need to be debited and credited and with how much in order to correct each of these errors.

Calculate the difference on the trial balance entered into a suspense account, assuming that the correction of these errors eliminates that whole balance.