You are a forensic accountant that has been hired to help investigate Trump Ltd You first discover that Eric, one of the owners relatives, performs duties combining the jobs of cashier and bookkeeper As a result, Eric handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations The balance per the 31 May 2020 bank statement was $15,313 Outstanding checks were no 62 for $107 74, no 183 for $127 50, no 284 for $215 26, no 862 for $132 10, no 863 for $192 78, and no 864 for $140 49 The statement showed a direct deposit by a customer who had been invoiced earlier for a credit sale The amount of the deposit was for $460, and this has not yet been recorded by the business The companys ledger showed one cash account with a balance of $18,608 81 The balance included cash on hand that was awaiting deposit Because of the lack of internal controls, Eric absconded with all of the cash in excess of $3,226 18 He then prepared the following bank reconciliation in an effort to conceal his theft Bank Reconciliation Cash balance per GL, 31 May Add Outstanding checks $18,608 81 No 862 $132 10 No 863 192 78 No 864 140 49 390 37 18,999 18 Less Deposits in transit 3,226 18 Unadjusted balance per bank, 31 May 15,773 00 Less Direct deposit 460 00 Cash balance per bank statement, 31 May $15,313 00 Required In order to determine the amount of the fraud, start with the given balance per the bank statement, which is correct, and prepare a bank reconciliation as discussed in lecture and tutorial The balance per GL that you will derive will be correct and different from the fraudulent figure of $18,608 81 calculated by Eric Calculate the amount of the fraud (Hint do not ignore the direct deposit Eric failed to record ) Prepare the two journal entries required by a) and b) Ignore GST Where in the SOCI should the loss appear (You may assume the company was uninsured and that the loss is not recoverable from Eric, who has left for Africa (permanently) to hunt endangered species Discuss the three ways that Eric used to conceal the theft The three ways should total to the amount of the theft

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You are a forensic accountant that has been hired to help investigate Trump Ltd. You first discover that Eric, one of the owners relatives, performs

You are a forensic accountant that has been hired to help investigate Trump Ltd. You first discover that Eric, one of the owners relatives, performs duties combining the jobs of cashier and bookkeeper. As a result, Eric handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.

The balance per the 31 May 2020 bank statement was $15,313. Outstanding checks were no. 62 for $107.74, no. 183 for $127.50, no. 284 for $215.26, no. 862 for

$132.10, no. 863 for $192.78, and no. 864 for $140.49. The statement showed a direct deposit by a customer who had been invoiced earlier for a credit sale. The amount of the deposit was for $460, and this has not yet been recorded by the business.

The companys ledger showed one cash account with a balance of $18,608.81. The balance included cash on hand that was awaiting deposit. Because of the lack of internal controls, Eric absconded with all of the cash in excess of $3,226.18. He then prepared the following bank reconciliation in an effort to conceal his theft.

Bank Reconciliation

Cash balance per GL, 31 May Add: Outstanding checks		$18,608.81
No. 862	$132.10
No. 863	192.78
No. 864	140.49	390.37
		18,999.18
Less: Deposits in transit		3,226.18
Unadjusted balance per bank, 31 May		15,773.00
Less: Direct deposit		460.00
Cash balance per bank statement, 31 May		$15,313.00

Required:

In order to determine the amount of the fraud, start with the given balance per the bank statement, which is correct, and prepare a bank reconciliation as discussed in lecture and tutorial. The balance per GL that you will derive will be correct and different from the fraudulent figure of $18,608.81 calculated by Eric.
Calculate the amount of the fraud. (Hint: do not ignore the direct deposit Eric failed to record.)
Prepare the two journal entries required by a) and b). Ignore GST. Where in the SOCI should the loss appear? (You may assume the company was uninsured and that the loss is not recoverable from Eric, who has left for Africa (permanently) to hunt endangered species.
Discuss the three ways that Eric used to conceal the theft. The three ways should total to the amount of the theft.