Question 2

The cash position for Neptune Enterprise for September 2021 is presented below. The business records reveal that

o the business cash at bank account showed at credit balance of $1,200 at 31 August 2021;

o 0n 30 September 2021 the bank statement showed an overdraft of $98,000;

o the totals of the cash receipts and cash payments journal for September 2021 are

o $91,508 and $118,708 respectively before considering any of the items appearing on the bank statement;

o cheque number 202777 for the amount of $10,100 from the September 2021 bank reconciliation statement is not appearing in the September 2021 bank statement.

The following items appeared on the September 2021 bank statement but not on the cash receipts or cash payments journals:

o bank charges of $100; and

o an amount of $2,500 paid by a customer directly into the bank account. The following items appeared in the cash receipts and cash payments journals but not on the bank statement:

o a direct credit of $8,560 in the bank statement was incorrectly recorded in the cash receipts journal as $9,560; and

o receipt number 8048 for cash collections of $81,100 deposited on 30 September.

Required:

a. Set up Neptune Enterprise's Cash Receipts Journal and Cash Payments Journal to adjust the balances with relevant transactions for September 2021. [5 marks]

b. Prepare and balance Neptune Enterprise's Cash at Bank ledger account (in T format) for the month of September 2024 [6 marks] c. Prepare Neptune Enterprise's Bank Reconciliation Statement as at 30 September 2021. [4 marks]