Neco 2017 Financial Accounting Question 6

The cash book of XYZ Ltd. for the month of June is partially shown below. All amounts are in ₦. | Date | Details | Ref | Cash Receipts (Dr) | Cash Payments (Cr) | |------|----------------------------|-----|--------------------|--------------------| | 1 | Opening balance | OB | 10,000 | | | 5 | Received from Customer A | | 8,000 | | | 7 | Paid rent | | | 2,500 | |10 | Received from Customer B | | 5,500 | | |12 | Paid salaries | | | 3,200 | |15 | Purchased supplies (cash) | | | 1,800 | |18 | Received loan from bank | |20,000 | | |20 | Paid electricity | | | 1,200 | |22 | Paid dividend to shareholders| | | 4,000 | |25 | Received interest on loan | | 500 | | |28 | Paid miscellaneous expenses| | | 900 | |30 | Closing balance | | | | It was later discovered that a cash receipt of ₦1,200 received on 20 June from a customer was omitted from the cash book. The bank statement for June shows a closing balance of ₦28,000. Outstanding cheques total ₦3,000 and deposits in transit total ₦2,500. Answer the following: a) Prepare the cash book for the month and determine the closing balance. b) State the difference between the cash book balance and the bank statement balance. c) Prepare a bank reconciliation statement to determine the amount of cash on hand.