Question

N Case Analysis 1 Smart Supplies Inc. s operating its business in GTA and dealing with different company maintains its bank account with TD bank. The bank sent end of each moth. Martin the CEO of the organization normally book balance regularly in order to see everything going on smoothly. who maintains cash book gives Martin monthly cash balance in the month of July 2019, Martin noted that there is a big different in warance as per TD Bank statement and the balance as per Cash Book He was confused and could not understand the reason why. He was a understand the reason why. He was also worried to note a huge difference between Cash Book Balance and the B Dank statement balance is much less than the Cash Book Balance. He was surprised thinking wher THIRING where the cash might go from the bank. Martin also not sure how much the cash the company might be having by the end of June. iviartin engaged you as an accountant to let him know why there is a huge different in between the cash book balance and the bank statement The Smart Suplies Inc. is operating it products. The company maintains statement at the end of each moth. Ma check the cash book balance regul The Cashier who maintains ca information. In the month of July between the balance as per TD The business record and the month end bank statement show the following: Balance as per Bank Statement $595. Balance as per Cash Book record $1,882. Sometimes customers send money to the bank by electronic transfer. It is noted in the bank statement that there is an EFT customer collection $300. As the bank provides services to the business normally debit bank charge at a regular interval. The bank statement shows that there was a service charge of an amount $12. The bank statement includes Three NSF (Not Sufficient Funds) from 3 different customers M & Co FM Inc. Muller M

Answer 1

172 playtin showing the balana of cash the company had in on 30th June 2019. uith Preparing the two statments starting with cash book balance and Rank statment Balance. 1882 A) Report starting with cash Book balance Balance as per cash book record Add D Collection from customer through 300 elebonic Transfer 2 cheque Krued but not cleared Mc miller 'CQ No. 54 6 200 peter CQ No. 647 300 Khan CQ No. 764 103 903 2785 Less ③ bank charges debited by bankle 12 Three NSE (Not sufficient fai hon customers Meco. FM Inc 20 muller m 30 Printing changes of cheque deducted by bank 6 che que deposited but not cleared Johnm CQ No. 354 1000 paul s co No. 333 Gagandeep Ca No. 435 200 cheque given to for salary mistaken urote $29 261 2190 ($290-$29) nalana as per Bank statment 1595 70

B Report Starting bank statment is as follows: 595 Balana as per Bank statment Add: Rank charges debited by Ronks The NSF (Not sufficient fond) from customers meco FM ING 20 muller m 3 printing changes of chaque deducted a 'hy bank @ cheque deposited but not cleared John M CQ Mo. 354 paul s CQ No. 333 588 | Gagandeep CQ No. 435 200 6 cheque given for salary mistaken arote $29 261 (8290-$29) less o collection from customer through 300. elebonic Transfer 2 cheque issued hat not pe cleared memiller CQ No. 546 200 Peter .(8 Mo. 647 300 khan ca No. 764 103 Ralana as per cash book 2190 903 1882 Explainabon che que issued but not presented for payment is not yet deducted from cash book. and cheque deposited but not cleared means amount is not I yet collected. All Bank charges printing charges are deducted from cash book due to expenses of the accoght holder. not having refficient and is also deducted from Cash book 6