Part (B) Five Star (Pvt) Ltd's cash book as at 31st March 2021 had a debit balance of Rs. 20,600. Bank Statement was not agreed with the cash book balance, Bank Statement had a balance of Rs. 90,000 (Credit balance). Following issues were identified through investigations. (1) Bank Statement did not include cheques amounting Rs. 284,000 issued by Five Star (Pvt) Ltd. (ii) Following cheques deposited during the March 2021.But It is shown in the bank statement of April 2021. Cheque Number Amount (Rs.) 111201 80000 450222 70000 650108 22000 (iii)Dividend Received Rs. 30,000 to the bank account directly. Recorded twice in the cash book. (iv) Customer deposited Rs. 5,400 directly in the bank during the month of March. Five Star (Pvt) Ltd recorded this amount on 06th April 2021 when the bank statement was received. (v) Cheque issued to a supplier amounting Rs. 76,600 was showed in the bank statement correctly. But Five Star (Pvt) Ltd recorded this as a Rs. 78,600 in their books incorrectly. (vi) Total payment side of the cash book was recorded Rs. 5,000 more. (vii) Bank charges of Rs. 25,000 not recorded in the cash book. Requirement (1) Prepare the adjusted cash book of Five Star (Pvt) Ltd for the month ended 31st March 2021. (ii) Prepare the bank reconciliation statement as at 31st March 2021.

pur-new-sol

Related Questions