P5 Apply the bank reconciliation process to prepare a number of bank reconciliations. I P6 Explain the process taken to reconcile control accounts and clear suspense accounts using given account examples. M3 Apply the reconciliation process demonstrating the use of deposit in transit, outstanding checks and Not Sufficient Funds (NSF) check. BRS transactions to be considered: 1. Overdraft as per passbook OMR 150,000 2. Interest on overdraft OMR 1,000 3. Insurance premium paid by the bank OMR 100 4. Cheque issued but not presented for payment OMR 3,250 5. Cheque deposited but not yet cleared OMR 3,000 6. Wrongly debited by the bank in the passbook OMR 250 7. Cheques received and recorded in the cash book but not sent to the bank for collection OMR 6,200 8. Payment received from a customer directly by the bank OMR 13,650 but no entry made in cash book 9. Cheques issued for OMR 87,600 not presented for payment. 10. There was a cheque deposited returned with a note by the bank 'not sufficient fund' (NSF) OMR 2,500 Unidentified transactions for suspense accounts: 1. A cash of OMR 500 has been received from an unknown party. The concerned department subsequentl found that the receipt is towards the sales made to Mr. Ahmed Salim 2. A new fittings has been ordered without the knowledge of the accounting department few months bet by marketing department. The accounting department was surprised when it received an invoice for payn of OMR 12,000 from New Age Technologies Ltd. However, later with the interaction of the marke manager, invoice has been debited to the marketing department. The amount has been paid immediatel- New Age Technologies Ltd. Data on control accounts: Invoice No. 222 Purchase Day Book Supplier Gross VAT Suppliers code. (OMR) (OMR) Adil LLC Aa 44,000 7,333 Badar Co Bb 56,320 9,386 Total 100,320 16,719 I Net (OMR) 36,667 46,934 83,601 223 Invoice No. Purchase Returns Day Book Supplier Gross VAT Suppliers code. (OMR) (OMR) Adil LLC Aa 1,408 235 Badar Co Bb 7,040 1,174 Total 8,448 1,409 24 Net (OMR) 1,173 5,866 7,039 25 Cash Payments and Credit Purchase Book (OMR) Ref Details Bank Discount Cash received Purchase (OMR) (OMR) VAT (OMR) Trade Payables (Credit purchases) (OMR) 41,705 45,841 222 223 2,053 Adil LLC 41,705 Badar Co 45,841 Cash purchase 10,560 Total 98,106 8,800 8,800 1,760 1,760 2,053 87,546 You need to: (a) Prepare accurate bank reconciliation that apply appropriate tools and techniques to check general accounts and balance sheets AND (b) Produce accurate accounts that have been reconciled applying appropriate methods
