Question 4 Sustained Berhad has been in business since July 2004. In August 2016, the cash account of the company showed a closing balance of RM32,430, while its bank statement had a closing balance of RM22,960. Upon investigation, this difference is caused by a cheque deposit that has not been cleared by the bank, amounted to RM11,920, and a cheque no. 32662 issued to a supplier but has not yet been presented to the bank. Below are the bank statement and cash account of Sustained Berhad for the month of September 2016: W KITTY ISLAMIC BANK Sustained Berhad 2-4, Flower Tower 58000 Kuala Lumpur Statement date: 30/9/2016 Account No: 1234-56-7890 Debit Credit 11,920 9,460 8,480 6,390 7,510 9,670 2,450 3,290 3,780 Date Description Beginning balance 02/09/16 Cheque deposit 05/09/16 Dishonoured cheque 06/09/16 Payment from account - Chq 32665 06/09/16 Payment from account - Chq 32666 07/09/16 Cheque deposit 08/09/16 Fund transfer to a/c 08/09/16 Payment from account - Chq 32662 12/09/16 Direct debit 13/09/16 Cash deposit 15/09/16 Payment from account - Chq 32667 15/09/16 Bank charges 19/09/16 Payment from account - Chq 32668 20/09/16 Credit memorandum 21/09/16 Cash withdrawal 22/09/16 Payment from account - Chq 32670 23/09/16 Cheque deposit 26/09/16 Standing instruction 29/09/16 Cheque deposit 30/09/16 Payment from account - Chq 32671 30/09/16 Dividend 30/09/16 Cheque book fee 9,930 50 5,060 Balance RM22,960 34,880 25,420 16,940 10,550 18,060 27,730 25,280 21,990 25,770 15,840 15,790 10,730 22,850 19,850 13,600 30,650 15,450 24,710 17,160 17,240 17,210 12,120 3,000 6,250 17,050 15,200 9,260 7,550 80 30 Chq. No 2016 Sept 1 Balance b/d 5 Trade receivable - Mek 17 Trade receivable - Awang 21 Trade receivable - Mek 27 Trade receivable - Awang 30 Trade receivable - Mek 1045 32668 3108 8765 21049 Chq.No 32665 32666 32667 32670 Cash Account RM 2016 32,430 Sept 4 Trade payable - Awan 7,510 5 Trade payable - Asap 5,600 13 Loan payable 17,050 20 Trade payable - Asap 9,260 21 Petty cash 8,890 25 Trade payable - Awan 28 Rental 29 Trade payable - Asap 30 Trade payable - Kabus 30 Balance c/d 80,740 32669 32671 32672 32673 RM 8,480 6,930 9,930 6,250 3,000 4,420 7,550 3,680 4,940 25,560 80,740 Additional information: 1. A new customer, Rainbow Trading, paid amount due amounted to RM9,670 directly to the company's account. 2. The dishonoured cheque was received from Chek Sdn. Bhd., a customer. 3. The company instructed the bank to pay its utility bill on 12th of every month, and to pay salary to its employees on 26th of every month. 4. The credit memorandum is for collection of note receivable amounted to RM12,000 by the bank on behalf of the company, together with interest of RM320. The amount credited to the company is net after collection fee charged by the bank. 5. The company received a call from the bank to inform that an amount of RM3,780 was credited to the company's bank account by mistake. 6. A further investigation revealed that the company's cash account includes two mistakes: i. Payment to Asap Trading on September 5 was recorded at the wrong amount. ii. A cheque no. 32668 issued to Awan Sdn. Bhd. on September 17 was wrongly treated as a receipt from Awang Trading. The transaction was also recorded at a wrong amount. Required: a) Make necessary adjustments in the Cash Account of Sustained Berhad. b) Prepare the bank reconciliation for the company as at 30 September 2016