In: Accounting
The following information is provided regarding Busy Business:
Bank Statement - Issued: 31/05/20 | |||||
Bank Statement 55 Page 1 | |||||
Date | Transaction | Withdrawal | Deposit | Balance | |
1-May | Balance | $ 5,455.00 | CR | ||
3-May | Deposit | 560.00 | $ 6,015.00 | CR | |
6-May | 1133 | 1,200.00 | $ 4,815.00 | CR | |
8-May | Dividend Telstra | 160.00 | $ 4,975.00 | ||
12-May | Deposit | 4,000.00 | $ 8,975.00 | CR | |
14-May | Deposit | 1,444.00 | $ 10,419.00 | CR | |
18-May | Deposit | 1,672.00 | $ 12,091.00 | CR | |
19-May | 1132 | 3,600.00 | $ 8,491.00 | CR | |
21-May | Deposit | 650.00 |
$ 9,141.00 |
CR | |
25-May | EFT Deposit | 300.00 | $ 9,441.00 | CR | |
27-May | 1135 | 960.00 | $ 8,481.00 | CR | |
28-May | DD- City Rentals | 880.00 | $ 7,601.00 | CR | |
29-May | Returned cheque | 120.00 | $ 7,481.00 | CR | |
30-May | Bank Fees | 45.00 | $ 7,436.00 | CR | |
31-May | 1136 | 5,000.00 | $ 2,436.00 | CR | |
Notes: | |||||
- Deposit on 8th May was a direct deposit from Telstra as a dividend on shares held | |||||
- EFT Deposit on 25th was payment by debtor/accounts receivable | |||||
- 28th May DD- City Rentals is monthly payment for rent | |||||
- 29th May returned cheque is a cheque returned 'not sufficient funds (NSF)' from an accounts receivable/debtor |
Cash at Bank | ||||||
Date | Item | Ref | Debit | Credit | Balance | |
1/05/2020 | Balance bd | $ 5,455.00 | DR | |||
31/05/2020 | Cash Rec 5 | 8,826.00 | $ 14,281.00 | DR | ||
31/05/2020 | Cash Pay 5 | 11,770.00 | $ 2,511.00 | DR |
Required:
Using the templates provided below
(a) prepare a bank reconciliation statement
(b) post the necessary adjustments to Cash at Bank in the General Ledger at 31st May 2020 .
(c) A bank reconciliation statement is an example of an internal control. Provide 2 further examples of internal controls that a business might have to safeguard its assets.
a)
Particulars |
debit ($) | credit ($) |
Balance as per Cashbook | 2511 | |
Total credits as per passbook | 8786 | |
Total recipts as per cashbook | 8826 | |
Total debits as per passbook | 11805 | |
Total payments as per cashbook | 11770 | |
Balance as per passbook | 2436 |
NOTE: In absence of clarification on whether the items of pass book are entered in cashbook or not and cashbook only containing totals of amount paid and recieved which too are different from passbook ,we cant show entry by entry reconcilliation.
b) Since "cash at bank" only shows total cash recieved and paid during the month we need to post entries for each transaction of the passbook for which explanation is given, assuming they might not be entered in cashbook.
Date | Particulars | dr | cr |
8/05/2020 |
Cash at bank a/c dr To Dividend recieved a/c (For dividend directly recieved by bank) |
160 |
160 |
25/05/2020 |
Cash at bank a/c dr To Debtor (Being amount directly paid to bank by debtor) |
300 |
300 |
28/05/2020 |
Rent a/c dr To Cash at bank a/c (Being monthly rent paid by bank) |
880 |
880 |
29/05/2020 |
Debtor a/c dr To Cash at bank a/c (Being cheque of debtor dishonoured) |
120 |
120 |
30/05/2020 |
Bank Charges a/c dr To Cash at bank a/c (For bank fees deducted by bank) |
45 |
45 |
c) Apart from bank reconcilliation Stock register and fixed assets register can be maintained as a internal control measure to safeguard its assets.