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Flavas Sdn Bhd involves in soft drinks and health food business with significant present online. The company has an overdraft facility from its bank with
Flavas Sdn Bhd involves in soft drinks and health food business with significant present online. The company has an overdraft facility from its bank with a credit limit of RM As of June the bank balance as per bank statement was RM whereas the balance as recorded in the General Ledger GL was RM With your recent training in accounting skills, you are assigned to prepare a bank reconciliation statement and to suggest relevant accounting adjustments. After comparing bank account records in the GL and transactions as presented in the bank statements, you identified the following reconciling items: A cheque of RM received from one of the customers was declined by the bank due to insufficient bank balance. Cheques received from customers were deposited to bank but not yet cleared with the total amount of RM Monthly rental payment of RM was debited in the bank statement by way of standing order. Due to urgency to secure trade supplies, Abdullah, CEO of Flavas made an online transfer of RM for the purchases. Bank charges of RM were debited in the bank statement. RM was transferred from bank account to fixed deposits as per bank requirements to maintain the overdraft limit This was yet to be recorded in Flavas' accounting book. Also, reminder was given by the bank for underutilised credit facilities. RM was deducted from the bank balance as recurring payments for monthly loan Instalments An electronic fund transfer of RM was received from Ayum Drinks, a trade customer. Profit sharing of RM from the bank was credited in bank statement. Utilities expenses of RM paid online were wrongly entered into bank account in the GL as RM Flavas received RM for the medical claims for staff from a takaful operator via electronic fund transfer A cheque RM was issued as payment to Angah, one of the trade creditors, but the cheque was not yet presented to the bank. Required: a Prepare bank reconciliation statement as at June b Post relevant journal entries to update the bank balance as at June marks c What is the adjusted bank balance in the General Ledger as at June Total: marks
Flavas Sdn Bhd involves in soft drinks and health food business with significant present
online. The company has an overdraft facility from its bank with a credit limit of
RM As of June the bank balance as per bank statement was
RM whereas the balance as recorded in the General Ledger GL was RM
With your recent training in accounting skills, you are assigned to prepare
a bank reconciliation statement and to suggest relevant accounting adjustments. After
comparing bank account records in the GL and transactions as presented in the bank
statements, you identified the following reconciling items:
A cheque of RM received from one of the customers was declined by the
bank due to insufficient bank balance.
Cheques received from customers were deposited to bank but not yet cleared with
the total amount of RM
Monthly rental payment of RM was debited in the bank statement by way of
standing order.
Due to urgency to secure trade supplies, Abdullah, CEO of Flavas made an online
transfer of RM for the purchases.
Bank charges of RM were debited in the bank statement.
RM was transferred from bank account to fixed deposits as per bank
requirements to maintain the overdraft limit This was yet to be recorded in Flavas'
accounting book. Also, reminder was given by the bank for underutilised credit
facilities.
RM was deducted from the bank balance as recurring payments for
monthly loan Instalments
An electronic fund transfer of RM was received from Ayum Drinks, a
trade customer.
Profit sharing of RM from the bank was credited in bank statement.
Utilities expenses of RM paid online were wrongly entered into bank
account in the GL as RM
Flavas received RM for the medical claims for staff from a takaful operator
via electronic fund transfer
A cheque RM was issued as payment to Angah, one of the trade
creditors, but the cheque was not yet presented to the bank.
Required:
a Prepare bank reconciliation statement as at June
b Post relevant journal entries to update the bank balance as at June
marks
c What is the adjusted bank balance in the General Ledger as at June
Total: marks
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