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Posted on Jul 31, 2024

3. JANUARY BANK STATEMENT CIMB Clicks Account Transaction History Account Number: 8007153362 From: 1-Jan-2022 To: 31-Jan-2022 Balance 9.447.20 4. BANK RECONCILIATION FOR PRECEDING MONTH: Cucoq

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3. JANUARY BANK STATEMENT CIMB Clicks Account Transaction History Account Number: 8007153362 From: 1-Jan-2022 To: 31-Jan-2022 Balance 9.447.20 4. BANK RECONCILIATION FOR PRECEDING MONTH: Cucoq Frozen Company Bank Reconciliation for period ending 31 December 2021 RM9,447.20 690.25 Background Cucos Frozen Company is a new company established since December 2021. Kim, a friend of yours, did not have much knowledge of accounting. She was confused about why the closing balances in her business bank statement and in her business cash book (bank column) are not the same. The data required to reconcile the bank statement as of January 31 have been taken from various documents and records and are reproduced as follows. The sources of data are printed in capital letters. All cheques were written for payments on account. CASH ACCOUNT: : Balance as of Jan 1 RM9.317.40 CASH RECEIPTS FOR MONTH OF JANUARY RM9,601.58 2. Cheques written: 1. DUPLICATE DEPOSIT TICKETS: Number and amount of each cheque issued in January: Cash balance according to bank statement Add: Deposit for Dec 31, not recorded by bank Less: Outstanding cheques No.631 No. 636 No. 638 No. 639 Adjusted balance Cash balance according to company's records Less: Service charges Adjusted balance RM162.15 345.95 251.40 60.55 (820.05) 9.317.40 9,352.50 (35.10) 9,317.40 Cheque No. Date and amount of each deposit in January Date Money In 690.25 0 0 1080.5 0 0 854.17 0 0 0 840.5 0 0 3500 0 0 0 210 0 0 0 896.61 0 0 882.95 0 0 1606.74 0 0 897.34 O 0 0 942.71 Amount (RM) 1,080.50 Money Out Balance 10.137.45 162.15 9.975.30 345 95 9.629,35 0 10,709.85 60.55 10,649.30 237.5 10,411.80 0 11,265.97 495.15 10.770.82 501.9 10,268.92 0 11.109.42 671.3 10,438.12 506.88 9,931.24 0 13.431.24 117.25 13,313.99 298.66 13.015.33 0 13,225.33 450.9 12,774.43 640.13 12, 134.30 0 13,030.91 276.77 12.754.14 299.37 12,454.77 0 13,337.72 537.01 12.800.71 380.95 12.419.76 0 14.026.50 449.75 13.576.75 272.75 13,304.00 0 14,201.34 407.95 13.793.39 901.5 12.891.89 0 13,834.60 Transaction Date Details 01-Jan Deposit - 01-Jan No. 631 01-Jan No. 636 02-Jan Deposit 02-Jan No. 639 02-Jan No. 640 04-Jan Deposit 04-Jan No. 641 04-Jan No. 642 09-Jan Deposit 09-Jan No. 643 09-Jan No. 644 09-Jan Deposit 09-Jan No. 645 09-Jan No. 646 09-Jan Deposit 09-Jan No.648 - 09-Jan No. 649 11-Jan Deposit 11-Jan No. 650 11-Jan No. 651 16-Jan Deposit 16-Jan No. 652 16-Jan No. 653 18-Jan Deposit 18-Jan No. 654 18-Jan No. 655 23-Jan Deposit 23-Jan No. 657 23-Jan No. 659 25-Jan Deposit - Not Sufficient 28-Jan Fund 31-Jan Service charge 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 Total amount Amount (RM) 237.50 495.15 501.90 671.30 506.88 117.25 298.66 Void 450.90 640.13 276.77 299.37 537.01 830.95 449.75 272.75 113.95 407.95 259.60 901.50 486.39 8,755.66 June 1 3 8 8 10 15 17 22 24 30 854.17 840.50 896.61 882.95 1,606.74 987.34 942.71 1.310.06 Required: (a) Prepare a bank reconciliation for 31 January 2022 after making the necessary adjustments to the company's cash records. If errors in recording deposits or cheques are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All cheques are written to satisfy accounts payable. (16 marks) (b) Joumalise the necessary entries to correct the errors. The accounts have not been closed. (8 marks) (c) What is the amount of Cash that should appear on the statement of financial position as of 31 January? (1 mark) (d) Assume that during the preparation of the bank reconciliation, Kim discovered that CIMB Bank incorrectly recorded a RM21,450 cheque written by Cucog Frozen as RM2,145. Kim has decided not to notify the bank but wait for the bank to detect the error. Kim plans to record the RM19,305 error as Other Income if the bank fails to detect : the error within the next three months. Discuss briefly whether Kim is behaving in a professional manner. (2 marks) (e) What if a cheque for RM7,500 has been incorrectly recorded by the bank as RM5,700? Briefly explain how the error would be included in a bank reconciliation statement and how it should be corrected (3 marks) (1) Suggest the possibilities of not performing bank reconciliation on monthly basis. (5 marks) Total 35 marks 0 0 300 13,534.60 40 13,494.60 + 3. JANUARY BANK STATEMENT CIMB Clicks Account Transaction History Account Number: 8007153362 From: 1-Jan-2022 To: 31-Jan-2022 Balance 9.447.20 4. BANK RECONCILIATION FOR PRECEDING MONTH: Cucoq Frozen Company Bank Reconciliation for period ending 31 December 2021 RM9,447.20 690.25 Background Cucos Frozen Company is a new company established since December 2021. Kim, a friend of yours, did not have much knowledge of accounting. She was confused about why the closing balances in her business bank statement and in her business cash book (bank column) are not the same. The data required to reconcile the bank statement as of January 31 have been taken from various documents and records and are reproduced as follows. The sources of data are printed in capital letters. All cheques were written for payments on account. CASH ACCOUNT: : Balance as of Jan 1 RM9.317.40 CASH RECEIPTS FOR MONTH OF JANUARY RM9,601.58 2. Cheques written: 1. DUPLICATE DEPOSIT TICKETS: Number and amount of each cheque issued in January: Cash balance according to bank statement Add: Deposit for Dec 31, not recorded by bank Less: Outstanding cheques No.631 No. 636 No. 638 No. 639 Adjusted balance Cash balance according to company's records Less: Service charges Adjusted balance RM162.15 345.95 251.40 60.55 (820.05) 9.317.40 9,352.50 (35.10) 9,317.40 Cheque No. Date and amount of each deposit in January Date Money In 690.25 0 0 1080.5 0 0 854.17 0 0 0 840.5 0 0 3500 0 0 0 210 0 0 0 896.61 0 0 882.95 0 0 1606.74 0 0 897.34 O 0 0 942.71 Amount (RM) 1,080.50 Money Out Balance 10.137.45 162.15 9.975.30 345 95 9.629,35 0 10,709.85 60.55 10,649.30 237.5 10,411.80 0 11,265.97 495.15 10.770.82 501.9 10,268.92 0 11.109.42 671.3 10,438.12 506.88 9,931.24 0 13.431.24 117.25 13,313.99 298.66 13.015.33 0 13,225.33 450.9 12,774.43 640.13 12, 134.30 0 13,030.91 276.77 12.754.14 299.37 12,454.77 0 13,337.72 537.01 12.800.71 380.95 12.419.76 0 14.026.50 449.75 13.576.75 272.75 13,304.00 0 14,201.34 407.95 13.793.39 901.5 12.891.89 0 13,834.60 Transaction Date Details 01-Jan Deposit - 01-Jan No. 631 01-Jan No. 636 02-Jan Deposit 02-Jan No. 639 02-Jan No. 640 04-Jan Deposit 04-Jan No. 641 04-Jan No. 642 09-Jan Deposit 09-Jan No. 643 09-Jan No. 644 09-Jan Deposit 09-Jan No. 645 09-Jan No. 646 09-Jan Deposit 09-Jan No.648 - 09-Jan No. 649 11-Jan Deposit 11-Jan No. 650 11-Jan No. 651 16-Jan Deposit 16-Jan No. 652 16-Jan No. 653 18-Jan Deposit 18-Jan No. 654 18-Jan No. 655 23-Jan Deposit 23-Jan No. 657 23-Jan No. 659 25-Jan Deposit - Not Sufficient 28-Jan Fund 31-Jan Service charge 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 Total amount Amount (RM) 237.50 495.15 501.90 671.30 506.88 117.25 298.66 Void 450.90 640.13 276.77 299.37 537.01 830.95 449.75 272.75 113.95 407.95 259.60 901.50 486.39 8,755.66 June 1 3 8 8 10 15 17 22 24 30 854.17 840.50 896.61 882.95 1,606.74 987.34 942.71 1.310.06 Required: (a) Prepare a bank reconciliation for 31 January 2022 after making the necessary adjustments to the company's cash records. If errors in recording deposits or cheques are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All cheques are written to satisfy accounts payable. (16 marks) (b) Joumalise the necessary entries to correct the errors. The accounts have not been closed. (8 marks) (c) What is the amount of Cash that should appear on the statement of financial position as of 31 January? (1 mark) (d) Assume that during the preparation of the bank reconciliation, Kim discovered that CIMB Bank incorrectly recorded a RM21,450 cheque written by Cucog Frozen as RM2,145. Kim has decided not to notify the bank but wait for the bank to detect the error. Kim plans to record the RM19,305 error as Other Income if the bank fails to detect : the error within the next three months. Discuss briefly whether Kim is behaving in a professional manner. (2 marks) (e) What if a cheque for RM7,500 has been incorrectly recorded by the bank as RM5,700? Briefly explain how the error would be included in a bank reconciliation statement and how it should be corrected (3 marks) (1) Suggest the possibilities of not performing bank reconciliation on monthly basis. (5 marks) Total 35 marks 0 0 300 13,534.60 40 13,494.60 +