Question 2 (25 Marks) Rainbow Berhad had a debit balance of RM11,939.30 in the cashbook on 31 December 2020. The Bank Statement received for the month showed a credit balance of RM15,379.80. On comparing the cashbook with the Bank Statement, the following were discovered: 1. Deposits in transit as at 31 December 2020 were RM4,735. 2. Outstanding cheques at 31 December 2020 totalled RM7,320.50. 3. Cash sales of RM1,930.40 on December, 21 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for RM1,980.40. 4. The bank credited Rainbow Berhad for the correct amount. A RM6,000 note receivable was collected by the bank for Rainbow Berhad on December, 31 plus RM160 interest. The bank charged a collection fee of RM40. No interest has been accrued on the note. 5. The statement included a debit memo of RM250 for the printing of additional company cheques. 6. On December, 18 the company issued cheque No. 567 for RM1,916 to BlueSky Berhad on account. The check, which cleared the bank in December, was incorrectly journalized and posted by Rainbow Berhad for RM1,961. 7. Bank charges of RM370 shown on the bank statement have not been entered in the company's cash book. 8. On December 31, the bank statement showed an NSF charge of RM3,280 for a cheque issued by Florance, a customer; to Rainbow Berhad on account. 9. A monthly direct debit payable to Tenaga Nasional Berhad (TNB) for RM1,360 was wrongly paid twice by the bank. Required: a) Prepare the bank reconciliation at 31 December 2020. [15 marks] Page 2 of 5 CONFIDENTIAL 202104/SEM103/A b) Explain FIVE (5) reasons that cause the balance on the bank statement to differ from the cash balance on the books? [10 marks]