Question

des a September 30 The bank statement lists The accountant has a. The Cash account shows a balance of $10,912. This amount includes a Septe deposit of $3.994 that does not appear on the September 30 bank statemen D. The September 30 bank statement shows a balance of $8,324. The bank $200 bank collection, a $13 service charge, and a $41 NSF check. The accom not recorded any of these items. c. At September 30, the following checks are outstanding: Check No. 154 256 278 291 292 Amount $116 150 853 990 206 145 293 d. The bookkeeper receives all incoming cash and makes the bank deposits. He also recon ciles the monthly bank statement. Here is his September 30 reconciliation: Balance per books, September 30......... Add: Outstanding check... Bank collection............. Subtotal............. ........... Less: Deposits in transit........... Service charge .......... NSF check.......... Balance per bank, September 30........ $10,912 1,260 200 12,372 $3,994 41 (4,048) $ 8,324 Requirement 1. Benz has requested that you determine whether the bookkeeper has stolen cash from the business and if so, how much He also asks you to explain how the bookkeep tempted to conceal the thell. To make this determination, you perform a proper iliation. There are no bank or book errors. Benz also asks you to evaluate the trols and to recommend any changes needed to improve them. how the bookkeeper at m a proper bank recor ou to evaluate the interna T abiatu

Answer 1

In the BRS problem, the balance of pass book (bank statement) must be 9524 but the bookkeeper has shown balance of 8324. Here is a misappropriation of $1200 (9524-8324). The bookkeeper has taken wrong total of outstanding checks. Focusing on the internal control the totalling must be computerised to avoid the fraud chances.

statement - Bank Reconciliation Balance as per the books Bank collection outstanding checks Add 10912 200 2460 2660 Less & Bank deposit service charge NSF charges e Balance as per 3994 13 내 14048) 9524 pass Book