Total 23 Marks Question 1 Suggested time allocation: 41.4 Minutes The bank portion of the bank reconciliation for Lord Limited as at 31 March 2018 was as follows. Lord Limited Bank Reconciliation As at 31 March 2018 $12,444.70 1,530.20 13,974.90 Cash Balance per bank Add: Outstanding deposits Less: Un-presented Cheques Cheque number Cheque Amount $1,260.40 720.10 2451 2470 2471 844,50 2472 503.60 2474 1,050.00 4,378.60 $9,596.30 Adjusted cash balance per bank The adjusted cash balance per bank agreed with the cash balance per books as at 31 March 2018 The April 2018 bank statement showed the following cheques and deposits: Bank Statement Cheques Deposits Amount S 1,530.20 1,211.60 Amount $ Date Cheques number 1/4 2/4 5/4 4/4 8/4 10/4 15/4 18/4 27/4 30/4 29/4 Date 1/4 4/4 8/4 13/4 18/4 21/4 25/4 28/4 30/4 2470 720.10 844.50 2471 2474 1,050.00 1,640.70 2,830.00 600.00 990.10 2475 2,575.00 1,472.70 2,945.00 2,567.30 1,650.00 1,186.00 16,127.90 2476 2477 2479 1,750.00 1,330.00 2480 2481 695.40 2483 575.50 Total 900.00 2486 Total 12,936.20 The records per books for April 2018 showed the following. Cash Pavment Journal Cash Receipt Journal Amount $ Amount S Date Cheque number 2475 $1,640.70 Amount Date Cheque number Date 1/4 2/4 2/4 4/4 8/4 10/4 15/4 18/4 20/4 22/4 23/4 24/4 29/4 30/4 3/4 7/4 12/4 17/4 20/4 24/4 27/4 29/4 30/4 Total 2483 575.50 1,211.60 2476 2,830.00 2484 829.50 990.10 974.80 2477 600,00 2485 2,575.00 1,472.70 2,954.00 2,567.30 1,650.00 1,186.00 1.338.00 15,944.70 538.20 2478 2486 900.00 1,570.00 398.00 2479 2487 2480 1,330.00 695.40 2488 1.200.00 Total 14,694.10 2481 2482 612.00 The bank statement contained the following direct debits/credits: A credit of $1,505.00 for the collection of a $1,400 note for Lord Limited plus interest of $120 and less collection fee for $15. Lord Limited has not accrued any interest on the note. (i) a A debt for printing of additional company cheques $72.00. (ii) $10,846.90, and the cash balance per the bank statement was As at 30 April, the cash balance per books was $17,069.40. The Bank did not make any errors; two errors were made in Lord Limited. Required: (a) Prepare bank reconciliation as at 30 April 2018. (Marks: 15) (b) Prepare adjusting entries based on the reconciliation. (Hint: The correction of any errors pertaining to recording cheques should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivables). (Marks: 8)