CQC7001 Section A: Answer BOTH questions. Question 1 The manager of Calm Security Sdn Bhd has approached you to get some advice regarding the discrepancy between the book balance and the bank balance as shown in the bank statement. The Calm's cash account on 31 December 2019 shows a balance of RM 3,100 while the bank balance on 31 December 2019 is RM 5,630. You have reviewed both the bank statement and the cash account, and found the following data: a) The bank statement includes two charges for non-sufficient fund (NSF) cheques from customers. One is for RM 390(#1), and the other is for RM 140(#2). b) The following Calm cheques are outstanding as at 31 December 2019: Amount Cheque No. (RM) 237 90 288 160 291 550 291 620 295 10 296 100 c) Calm collects from a few customers by electronic funds transfer (EFT). The bank statement shows a RM1700 EFT deposit for a collection on account. d) The bank statement includes two deposits that Calm hasn't recorded yet: RM850 for dividend revenue and RM60 for the interest revenue Calm earned on its bank balance during December. e) The bank statement shows a RM70 subtraction for the bank service charge. f) On 31 December, the accounts clerk deposited RM310, but this deposit does not appear on the bank statement. g) The bank statement includes a RM700 deduction for a cheque drawn by Mollie Enterprise. Calm notified the bank of this bank error. Required: () Explain to the manager of Calm Security Sdn Bhd regarding the balance discrepancy by showing the bank reconciliation as at 31 December 2019. (10 marks) (ii) Journalise any required entries from the bank reconciliation. Include an explanation for each entry. (10 marks) (Total: 20 marks) 276