David Greene the bookkeeper for Botanic a wholesale

distributor of #8207
David Greene, the bookkeeper for Botanic, a wholesale distributor of garden equipment,
prepares accounts without the aid of a computerized accounting system. He carries out a bank
reconciliation on a monthly basis. The details of the cash book for December 20X2 are set out
below: David received Botanic's monthly bank statement for December 20X2 on 6 January
20X3. Details of the bank statement are set out belowAdditional information1. All of the cheque
payments in December 20X2 were made to suppliers.2. The cheques paid to suppliers during
November 20X2 and not presented to the bank by 30 November 20X2
were:097....................£312.12098....................£352.00099..................£1,189.193. David
Greene has made a transposition error when entering the opening balance for December 20X2
into the cash book. It should have read £1,051.80 debit instead of £1,501.80 debit.4. The credit
appearing in the bank statement in respect of T.Y. Ltd. is a dividend.5. The standing order for
G.T. Properties has been debited to Botanics bank account in error by the bank. David Greene
has written to the bank highlighting the error and has asked for the funds to be credited back to
Botanic's account as soon as possible. This was the only error made by the bank in December's
bank statement.6. Customer A and Customer B are both credit customers.7. N.E. Electricity has
an account in the creditors' ledger. However, since payments made to AB Insurance vary on a
monthly basis, Botanic has decided not to open an account for them in the creditors'
ledger.Requireda .Show the adjustments that should be made to Botanic's cash book for
December 20X2.b .Prepare a bank reconciliation statement at 31 December 20X2.c .Identify the
entries required in Botanic's ledgers as a result of the adjustments in a above.View Solution:
David Greene the bookkeeper for Botanic a wholesale distributor of

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