Unit Learning Outcomes:

LO3: Perform bank reconciliations to ensure company and bank records are correct.

LO4: Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts.

Assignment Brief and Guidance:

The Scenario

In a recruitment process, an Accounting firm planned to conduct written examination to shortlist the candidates for final selection. The interview process has many phases such as initial screening with telephone calls, general aptitude test, written test, and the final interview. You have gone through the first two processes successfully and now ready to take up the written test. The written examination is based on the domain of Accounting. As communicated in the notification of the interview, the content for the written test will be BRS, Suspense Accounts and Control Accounts. The connected requirements for obtaining various grades are clearly mentioned in page No. 4, so that you will be shortlisted for final interview.

Once you qualify this written examination, you will be called for a final interview with the Company Chief Accounting Officer (CFO) shortly. The items relating to the various accounting transactions are given below for you to resolve.

To resolve the BRS transactions:

1. Overdraft balance as per Cash Book OMR 45,000
2. Bank charges in the Passbook OMR 50 not recorded in the Cash Book
3. Interest earned recorded in the Passbook OMR 150
4. Electricity bill paid by the Bank directly OMR 1,000
5. Dividend directly collected by the Bank OMR 2,500
6. Cheques issued to various suppliers amounting to OMR 12,000 not debited in the Passbook
7. An amount of OMR 175 entered wrongly on the debit side of the Cash Book
8. Cheques deposited with the Bank, but Bank did not collect the money OMR 15,000
9. A cheque for OMR 5,200 deposited returned with a note 'Insufficient Fund'
10. Cheques deposited recorded in the Cash Book but not sent for collection OMR 32,000
11. Debit in the Passbook found for OMR 3,000 for a dishonored cheque
12. Deposited by a supplier directly in the Bank OMR 4,500

To resolve transactions on suspense accounts:

1. An amount of OMR 13,300 received from a customer not clearly traced. The Accounting Department after a thorough checking found that the money received is towards the rent to be received from M/S Ghanim Traders

2. A bill received from Armstrong Associates for a consultation fee of OMR 1,500. The Accounting Department was enquiring with the company executives regarding which Department that this bill must be debited for. However, after some time, there was a message from R&D Department stating that they sought the outside consultancy firm for launching a new product of the Company. Immediately, the Accounting Department debited this invoice to the R&D department.

To resolve control accounts:

Purchase Day Book
Invoice No.	Suppliers	Supplier code.	Gross	VAT	Net
3001	Prime Products	PP-1	145,000	12,000	133,000
3002	East Pharma	EP-1	135,000	11,000	124,000
Total			280,000	23,000	257,000

Purchase Returns Day Book
Invoice No.	Suppliers	Supplier code.	Gross	VAT	Net
146	Prime Products	PP-2	4,500	350	4,150
147	East Pharma	EP-2	3,000	250	2,750
Total			7,500	600	6,900

Cash Payments and Credit Purchase Book
Ref	Details	Bank	Discount received	Cash Purchases	VAT	Trade Payables (Credit purchases)
3001	Prime Products	110,000				110,000
3002	East Pharma	100,000	5,000			100,000
	Cash purchase	25,000		22,000	3,000
Total		235,000	5,000	22,000	3,000	210,000

You need to:

1. Prepare accurate bank reconciliation that apply appropriate tools and techniques to check general accounts and balance sheets

AND

2. Produce accurate accounts that have been reconciled applying appropriate methods

Learning Outcomes and Assessment Criteria
Learning Outcome	Pass	Merit	Distinction
LO3: Perform bank reconciliations to ensure company and bank records are correct.	P5 Apply the bank reconciliation process to prepare a number of bank reconciliations.	M3 Apply the reconciliation process demonstrating the use of deposit in transit, outstanding checks and Not Sufficient Funds (NSF) check.	D3 Prepare accurate bank reconciliations that apply appropriate tools and techniques to check general accounts and balance sheets.
LO4: Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts.	P6 Explain the process taken to reconcile control accounts and clear suspense accounts using given account examples.	M4 Demonstrate understanding of the different types of accounts and how and why they are reconciled.	D4 Produce accurate accounts that have been reconciled applying the appropriate methods.