Question

Infrastructure University Kusla Lumpur Bachelor of Accountancy (Hons) Sem: Sept/Oct 2019 ACCT 1121 Financial Accounting I Assignment (Bank Reconciliation) CLO2.PL.02 Instructions: This is a group assignment (Min2, Max 3). Your answers should be in handwritten Submission: Attach the Question Paper together with your answer Use the Cover Page attached • Question: Sunny Light House operates in Petaling Jaya. The company sells lights for interior decorations for offices. The company has a business account with MyBank Bhd. On 31 March 2019, the bank column for Sunny Light House cash book showed a debit balance of RM7,350. The bank statement from MyBank Bhd however was showed a credit balance of RM9,388. The following was discovered: i ii. iii. vi. Dividends of RM118 were credited directly to the bank. A direct debit of RM435 was paid to Maxus, the telephone and communication provider. Tax refund via direct credit from Inland Revenue Board (IRB) due to excess tax deduction amounting RM3,640. Bank charge of RM70 was incurred due to late settlement of loan Cheque of RM640 issued to Accounts Payable Jamal was inaccurately recorded as RM604 in the cashbook. Standing order of RM250 for fire insurance premium was made to Prodential Insurance The following cheques had been issued to Accounts Payable but not presented yet. Pay to Cheque Number Amount (RM) Abraham Electrics Sdn Bhd 250780-1007 420 250780-1028 370 David Appliance Noah Supplies 250780-1017 190 vii.

Answer 1

1. Sunny Light Bank account in the cash book
CASH BOOK
Debit			Credit
Date	Particulars	Amount	Date	Particulars	Amount
		RM			RM
31-Mar-19	To balance b/fd	7350		By communication exp	435
	To Dividend	118		By bank charges	70
	To income tax refund	3640		By accounts payable (Jamal)	640
	To accounts payable (Jamal)	604		By insurance premium	250
				By Salam distributor	610
				By balance c/fd	9707
		11712			11712
2. Bank reconciliation statement
					RM
Bank balance as per cash book					9707
Add: Cheque issued but not presented for payment
	Abraham Electric		420
	David Appliance		370
	Noah supplies		190		980
					10687
Less: Cheque deposited but not cleared yet					1299
Balance as per bank					9388
3. Internal contorl measures for cash and bank
a) Accountability, authorisation and approval - Cash accountability ensures that cash is properly accounted for, properly documented
and secured, and traceable to specific cash handlers.
b) Review and reconciliation - Your reconciliation activities confirm that you have recorded transactions correctly.
If possible perform weekly reconcliation of cash and bank balance.
4. In case of post dated cheque, such cheque will not be accounted till the datte which is written on the cheque.
So sunny Light house will not record such cheque in their books till 15 May 2019
So this cheque will not impact financial position of Sunny Light House.