Infrastructure University Kusla Lumpur Bachelor of Accountancy (Hons) Sem: Sept/Oct 2019 ACCT 1121 Financial Accounting I Assignment (Bank Reconciliation) CLO2.PL.02 Instructions: This is a group assignment (Min2, Max 3). Your answers should be in handwritten Submission: Attach the Question Paper together with your answer Use the Cover Page attached Question: Sunny Light House operates in Petaling Jaya. The company sells lights for interior decorations for offices. The company has a business account with MyBank Bhd. On 31 March 2019, the bank column for Sunny Light House cash book showed a debit balance of RM7,350. The bank statement from MyBank Bhd however was showed a credit balance of RM9,388. The following was discovered: i ii. iii. vi. Dividends of RM118 were credited directly to the bank. A direct debit of RM435 was paid to Maxus, the telephone and communication provider. Tax refund via direct credit from Inland Revenue Board (IRB) due to excess tax deduction amounting RM3,640. Bank charge of RM70 was incurred due to late settlement of loan Cheque of RM640 issued to Accounts Payable Jamal was inaccurately recorded as RM604 in the cashbook. Standing order of RM250 for fire insurance premium was made to Prodential Insurance The following cheques had been issued to Accounts Payable but not presented yet. Pay to Cheque Number Amount (RM) Abraham Electrics Sdn Bhd 250780-1007 420 250780-1028 370 David Appliance Noah Supplies 250780-1017 190 vii. A cheque for RM610, from Salam Distributors Sdn Bhd was dishonoured by the bank vili due to insufficient fund. ix BMI 299 worth of cheques were banked in on 30 March 2019 were only credited on 2 April 2019. Required: a) Update the Sunny Light House's bank account in the cash book. (10 marks) b) Prepare a bank reconciliation statement as at 31 March 2019. (10 marks) c) From accounting perspective, suggest any TWO (2) internal control procedures which are important in managing cash and bank items for the company. (4 marks) d) Assume that Sunny Light House receives a post dated cheque on 31 March 2019. The cheque is from Perfect Shine Sdn Bhd. The date appears on the cheque is 15 May 2019. Required: Discuss whether this cheque should be considered as uncleared cheque (bank lodgement not yet credited) or not. How does this cheque will affect the current assets section in Statement of Financial Position (6 marks)