The book keeper of Doris's Ltd was preparing the reconciliation for the month of July 2020 and noted a difference between the bank statement balance and the balance on the bank account in the general ledger. The bank statement shows a balance of GH$4.788 cash at bank. The balance on the bank account (cash book) in the general ledger was GH¢2,022 (credit). The following reasons accounted for the difference: Five cheques amounting to GH€ 66,591 paid to suppliers have not yet been presented at the bank b) A Cheque issued was incorrectly recorded in the cash book as GH48,871. The cheque was correctly debited to the bank statement on 15 July 2020 as GH¢8,277. e) Bank Charges of GH€8,043 was debited by the bank on 29 July 2020. d) A customer's cheque amounting to GH€6,720 was returned by the bank in July as the customer had insufficient funds in his account. The book keeper is yet to record the returned cheque in their books. e) A deposit of GHe 17,850 entered in Doris's cash book on 30 July 2020 was credited on the bank statement on 3 August 2020. 1) The bank has incorrectly credited Doris's account with an interest of GH¢4,620. This is interest on a deposit account held by the Managing Director personally. The bank had not corrected the error by 31 July 2020.
