Reference no: EM132657791

The cashbook column of Tata Company ltd had an overdraft of sh. 532400 as at 31st October 2008, which did not agree with balance as per bank statement of the same date .On checking through the relevant records and documents, some details were established as shown below:

1. Bank charges and interest on over draft as per the bank statement amounted to sh. 12,450 and 135480 respectively.

2) A debtor deposited sh. 254,500 to the bank directly.

3) Insurance premium of the mortgaged property amounting to sha.35, 485 was paid directly by the bank.

4) Standing orders of ksh.138, 000 have been affected by the bank

5) A Cheque for ksh.354890 which was banked on 29th October.1998 was credited by the bank on 5th November, 2008.

6) A Cheque drawn by the company amounting to sh. 745964 had not been presented for payment as at 31st October 2008.

7) A cheque for sh.74500 was debited by the bank as sh. 47.500.

9) The bank had debited the account with another customer cheque of sh. 27500 but had not yet corrected the mistake on 31st October 2008.

Required:

Question i) Make adjustments in cash book and show the adjusted cash book balance.

Question ii) A bank reconciliation statement as at 31 October, 2008.