Reference no: EM132600116

On August 31,2006 the cash ledger account in awash international company shows a debit balance of birr 82,461 while the bank statement provided by Abyssinia bank indicates a balance of birr 110,632. A receipt of august 31, for 12,924 birr was not included in august bank statement . in addition the checks,which ware issued but not paid by bank during this months totals birr 11,458. credit memorandums send by the bank indicated that notes receivable left with the bank for birr 10,200 had been collected and credited for 10,240 birr including interest revenue of birr 40. in addition the maturing value of treasury bill birr 20,000 collected during this month. the bank acquired for awash company at a discount for birr 18,800 and had been recorded at cost in the short term investment ledger account by awash company . the bank statement included in debit memorandum includes birr 28 as a service charge for the month of august. a check for 521 birr drown by ABC company (creditor) returned and marked as NSF . check number 1334 issued for 328 birr had been recorded by bank as 382 birr.

Required

Question 1: Prepare bank recondition schedule for awash company for the month of august?

Question 2: Make the necessary journal entries?