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PARTA SNM Sdn Bhd received its bank statement for the month of March 2020 from BCB Bank The bank statement shows a balance of RM520,200
PARTA SNM Sdn Bhd received its bank statement for the month of March 2020 from BCB Bank The bank statement shows a balance of RM520,200 while SNM Sdn Bhd cash book balance shows a balance of RM512,750 on 31 March 2020. A comparison of the bank statement with the cash book reveals the following information. i. Cheque number 1444 for RM2,000 and cheque number 1501 for RM2,900 are still outstanding on the 31 March 2020. ii. The bank statement indicates that BCB Bank has collected RM15,000 cash on note receivable for SNM Sdn Bhd. The bank also charged a collection fee of RM150. However, SNM Sdn Bhd did not record this event before receiving the statement. On 31 March 2020, a cheque with the amount of RM3,200 was placed in a cheque deposit machine after working hours. However, this amount does not appear on the 31 March bank statement. iv. In the process of comparing the bank statement with the entries in the book records, it is found that cheque number 1532 had been correctly drawn for RM7,500 to pay for inventories purchase but was mistakenly recorded as RM7,050 in the cash book and inventory account The bank statement includes a RM1,500 withdrawal that SNM Sdn Bhd did not make. Further investigation has found that the BCB Bank has mistakenly debited SNM Sdn Bhd's account instead of another depositor account. vi. The bank statement shows that SNM Sdn Bhd camed RM5,000 of interest. A Non-Sufficient Fund (NSF) cheque of RM12,140 by one of the customers was retured by the bank. The bank also charged RM10 for handling the NSF cheque. v. vii. REQUIRED: (a) Prepare a bank reconciliation statement for SNM Sdn Bhd as at 31 March 2020. (6 Marks) (b) Prepare the necessary journal entries to bring SNM Sdn Bhd's book balance of cash to the reconciled balance as at 31 March 2020. (4 Marks)
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