QUESTION 1 The bank reconciliation statement of Honshu Ltd for February 2020 is set out below:...

 

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QUESTION 1 The bank reconciliation statement of Honshu Ltd for February 2020 is set out below: 1) Bank reconciliation statement on 29 February 2020:< DR Balance as per bank statement Add: Unpresented cheques not debited by bank:< W $ 24 131.00 Dr No. 658 6634 6670 2 Less: Outstanding deposit CR Balance as per Cash at Bank account $ 2 670.00 512.00 2 48.00 3 230.00 27 361.00 2 18 549.00 2 $ 8812.00 Cre 2) The cash receipts and cash payments journals for the period ending 15 March, 2020 were as follows:< Honshu Ltd. Cash Receipts Journal Honshu Ltd Cash Payments Journal 2 Date Particulars $4 Date Cheque # $< 2 Mar 2 Deposit 3 942.00 Mar 2 672< 324.00 Mar 3 Deposit 4 280.00 673 182.00 E Mar 4 674 1540.00 Mar 6 Deposit 625.00€ 675 986.00 ˋ t Mar 8 676 439.00 Mar 9 Deposit 2 469.00€ 677 1 890.00 678 859.00 P Mar 9 679 2 310.00 Mar 11 Deposit 1 822.00 + 680 726.00 Mar 12 Deposit< 3 624.00 Mar 12 681 972.00 Mar 15 Deposit TOTAL 2 420.00 e TOTAL 10 228.00 19 182.00 e 2 2 3) Honshu Ltd's Bank statement at March 15, 2020 is shown on the following page:< ୮ Date 2020 WAT BANK WICHTOWN Statement of Account - Honshu Ltd.< Particulars Brought forward < Debit Credit Balance 2 2 24 131 DR March 1 18 549 5 582 DR 3 3 942 1 640 DR Cheque 658 2 670 4 310 DR Account keeping fee 85 4 395 DR Cheque 667 48 4 443 DR 4 4 280 163 DR 7 Cheque 674 1540 Cheque returned (NSF)< 295 1 703 DR 1998 DR 625 1373 DR Cheque 673 182 1 555 DR 10 2 469 914 CR Interest on investment 925 11 Cheque 672< Cheque 677 Cheque 676 12 Cheque 679 Payment authority (to M. Chung)< 15 4 0 Cheque 675 Interest on overdraft Account keeping fee< Transaction fee 324 1890 439 814 DR 1 822 1 008 CR 2 310 1 302 DR 238 1 540 DR 3 624 2 084 CR 986 1 098 CR 879 219 CR 120 99 CR 36 63 CR 1 839 CR 1 515 CR 375 DR Required:< a) Complete the cash receipts and cash payments journals. Calculate the new totals for each journal.< b) c) d) Prepare the Cash at Bank Ledger Account as at 15 March, 2020.< Prepare a Bank reconciliation statement as at 15 March, 2020.< In your own words explain how the preparation of the bank reconciliations assists the internal control of cash for Honshu Ltd. Identify at least three (3) key control points of the reconciliation process. QUESTION 1 The bank reconciliation statement of Honshu Ltd for February 2020 is set out below: 1) Bank reconciliation statement on 29 February 2020:< DR Balance as per bank statement Add: Unpresented cheques not debited by bank:< W $ 24 131.00 Dr No. 658 6634 6670 2 Less: Outstanding deposit CR Balance as per Cash at Bank account $ 2 670.00 512.00 2 48.00 3 230.00 27 361.00 2 18 549.00 2 $ 8812.00 Cre 2) The cash receipts and cash payments journals for the period ending 15 March, 2020 were as follows:< Honshu Ltd. Cash Receipts Journal Honshu Ltd Cash Payments Journal 2 Date Particulars $4 Date Cheque # $< 2 Mar 2 Deposit 3 942.00 Mar 2 672< 324.00 Mar 3 Deposit 4 280.00 673 182.00 E Mar 4 674 1540.00 Mar 6 Deposit 625.00€ 675 986.00 ˋ t Mar 8 676 439.00 Mar 9 Deposit 2 469.00€ 677 1 890.00 678 859.00 P Mar 9 679 2 310.00 Mar 11 Deposit 1 822.00 + 680 726.00 Mar 12 Deposit< 3 624.00 Mar 12 681 972.00 Mar 15 Deposit TOTAL 2 420.00 e TOTAL 10 228.00 19 182.00 e 2 2 3) Honshu Ltd's Bank statement at March 15, 2020 is shown on the following page:< ୮ Date 2020 WAT BANK WICHTOWN Statement of Account - Honshu Ltd.< Particulars Brought forward < Debit Credit Balance 2 2 24 131 DR March 1 18 549 5 582 DR 3 3 942 1 640 DR Cheque 658 2 670 4 310 DR Account keeping fee 85 4 395 DR Cheque 667 48 4 443 DR 4 4 280 163 DR 7 Cheque 674 1540 Cheque returned (NSF)< 295 1 703 DR 1998 DR 625 1373 DR Cheque 673 182 1 555 DR 10 2 469 914 CR Interest on investment 925 11 Cheque 672< Cheque 677 Cheque 676 12 Cheque 679 Payment authority (to M. Chung)< 15 4 0 Cheque 675 Interest on overdraft Account keeping fee< Transaction fee 324 1890 439 814 DR 1 822 1 008 CR 2 310 1 302 DR 238 1 540 DR 3 624 2 084 CR 986 1 098 CR 879 219 CR 120 99 CR 36 63 CR 1 839 CR 1 515 CR 375 DR Required:< a) Complete the cash receipts and cash payments journals. Calculate the new totals for each journal.< b) c) d) Prepare the Cash at Bank Ledger Account as at 15 March, 2020.< Prepare a Bank reconciliation statement as at 15 March, 2020.< In your own words explain how the preparation of the bank reconciliations assists the internal control of cash for Honshu Ltd. Identify at least three (3) key control points of the reconciliation process.

Answer rating: 100% (QA)

a Complete the Cash Receipts and Cash Payments Journals Calculate the totals for each journal Cash Receipts Journal Date Particulars Mar 2 Deposit 394... View the full answer