Section B:

2 (a)

The following information is available for preparing bank reconciliation statement of Yousaf Company, on March 31, 2019

• i. Credit balance as per cash book , March 9, was OMR 8,420.
• ii. Debit balance as per bank statement, March 9, was OMR 48,000.
• iii. Cheques issued in favour of suppliers OMR 35,000 out of which presented cheques were OMR 28,000.
• iv. Cheque deposited into Bank OMR 75,000 out of which cheques for OMR 40,000 were cleared
• v. Cheque issued OMR 4,500 to suppliers was not entered in company books.
• vi. Bank charged interest on overdraft OMR 500, not recorded by company.
• vii. Bank credited the account OMR 1,500 as dividend.
• viii. A cheque issued to supplier OMR 8,750 was wrongly entered in business as OMR 5,870.
• ix. Bank dishonored cheque of a customer which was deposited into Bank OMR 5,100.
• x. Bank debited OMR 100 as bank charges.

 Required: Prepare Bank Reconciliation Statement. (6 Marks)

Answer 2(a):

Yousaf Company

Bank Reconciliation Statement

March 31, 2019

Pass Book (Bank Statement)	Cash Book	Particulars

2 (b) (4 Marks)

Cash is the most liquid of all assets and every company is required to control it adequately. It needs to be monitored cautiously. You are the Chief Accountant of Gulf Transport Company, and suspecting leakage of revenues in the business. In order to deal with this situation, what measures you would like to take to stop such a loss to the company.