Q1. The cash book balance of ABC co.

shows a balance of birr 22,290 on December 31,

2012. The bank statement as of the same date shows a balance of birr 25,000. After
comparing the bank statement with the book balance, the following information was
identified:
a. A deposit of birr 4,200 made after banking hours on December 31, 2012 does not
appear on the bank statement.
b. Outstanding checks from December were birr 2,824.
c. The bank has collected Br. 4822.00 non-interest bearing note receivable on behalf of
the depositor.
d. The bank returned a NSF check in the amount of birr 444.
e. The bank issued a debit memorandum for bank service charges of birr 155.
f. The company (ABC) erroneously recorded Br. 750 cash collected from customer as
Br. 507 on the cash receipt journal.
g. The bank erroneously records the deposit of Br. 540 as Br. 450 on the depositor’s
account.
h. Check no.184 issued for the supplier in the amount of Br. 980 had been entered in
the cashbook as Br.690,
Required:
1. Prepare the Bank reconciliation at December 31, 2012
2. Prepare the necessary adjusting entries at December 31, 2012