Question
Question 5 You joined Tulip & Co as an intern on June 22, 2020. The bank statement of Maybank for the month ended May 31,
Question 5
You joined Tulip & Co as an intern on June 22, 2020. The bank statement of Maybank for the month ended May 31, 2020 was just printed out by Ms Tulip, which showed a credit balance of $114,680. She has also given you the Bank Reconciliation Statement as at April 30, 2020 and both the cash payment journal and cash receipts journal. The total in the cash receipts journal and cash payments journal of the month of May 2020 is $645,780 and $588,000 respectively.
Bank Reconciliation Statement as at April 30, 2020
|
Balance as per bank statement (Dr) |
| $ (24,000) | |
| Add: Deposits not credited |
| 90,000 | |
| Less: Unpresented cheques |
|
| |
|
| 500105 | 12,000 |
|
|
| 500695 | 9,000 |
|
|
| 500697 | 27,000 | (48,000) |
| Balance as per cash at bank ledger (Dr) |
|
| 18,000 |
After checking the records, you found the following differences:-
- Entries in the cash journals of May that do not appear in the May bank statement are:
- Cheque 500415 for $88,600
- Deposit not yet credited to the bank account is $81,800
2) Entries in the May bank statement that are not recorded in the cash journals of May are:
| - 1 May | Deposits | $90,000 |
| - 5 May | Bank charges | $ 600 |
| - 10 May | Cheque 500695 debited to the account | $ 9,000 |
| - 15 May | A customer paid directly to the bank account | $ 6,400 |
| - 20 May | Cheque dishonoured Thompson Ltd, a customer of Tulip & Co. | $ 3,000 |
| - 29 May | Cheque 355721 debited to the account | $ 9,700
|
Question 5 (cont)
Cheque 355721 did not coincide with the cheque numbering on the businesss current cheque book, this matter was referred to the bank manager for investigation. The bank acknowledged on June 5 that this cheque has been wrongly debited to account of Tulip & Co. The bank will make the correction in the Junes bank statement.
3) Cheque 500105 of $12,000 was issued to a supplier on January 10, 2020. On June 5, the supplier informed Ms Tulip that he had misplaced the cheque and requested for a new cheque. Cheque 500105 was cancelled and reissued on June 6, 2020.
Required:
- Prepare the Cash at Maybank ledger account for the month of May 2020 by including all updates and corrections.
- Prepare the monthly bank reconciliation statement as at May 31, 2020.
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