Question

QUESTION 4 a) Jacqueline Mensah, manager of Expert Building Company, is a valued and trusted employee. She has been with the company from its start two years ago. Because of the demand of her job, he has not taken vacation since she began working. She is in charge of recording collections on account, making the dail bank deposits, and reconciling the bank statement. Late last year, clients began complaining to you, the Managing Director, about incorrect statements. As Managing Director, you want to investigate this matter. Jacqueline tells you there is nothing to worry about. The problem is due to the slow mail: customers payments and statement are crossing in the mail. Because clients were not complaining last year, you doubt the mail is the primary reason for the problem. Required: i. What might be some of the reasons for the delay? ii. What should be done to make sure the problems are avoided in the future? [4marks [6marks b) The following is a summary of the cash book of High Ltd for March 21019: GH GH Opening balance b/d 4,120 Payments 46,560 Receipts 45,320 Closing balance c/d 2880 49.440 49.440 i. The las On the investigation you discover that at 31 March 2019: The last page of the paying-in books a deposit of GH€1,904 which has not yet been credited by the bank. ii. Two cheques paid to suppliers for GH¢642 and GH¢1,200 have not yet been presented to the bank. iii. Dividends received of the GH¢189 are shown on the bank statement but not entered in the cash boo iv. Bank charges of GH¢105 shown on the bank statement have not been entered in the cash book. V. A cheque for GH¢54 has been returned by the bank marked 'refer to drawer' but it has not been written back in the cash book. vi. A cheque drawn for GH¢141 has been entered in error as a receipt in the cash book. vii. The bank has debited a cheque for GH¢216 error to the company's account. You are required to: Show the adjustments that should be made in the cash book. li. Prepare a bank reconciliation statement at 31 March 2019. [4marks [6marks

please kindly work Questions 4a and 4b for me.

Detailed workings with some little explanation would be appreciated.

Thank you

Answer 1

Answers 4 (a)i

Jacqueline Mensah Is dedicated employee of the company from the starting of the company as this can be proved by the dedication she has shown by not taken any leave from last two year.

The problem facing by the customers for the wrong statement can be due to following reasons

1- As during the first year of company ,pressure of work  was not too much as they were limited clients and it was well handled by jacqueline , but as company grew the client and transactions grew which led to mishandling the work pressure by jacqueline which can be proved as she has not taken any leave .

2- As the jacqueline single handed handling all the work of bank deposits , bank reconcillation and recording collections so she might be mishandling the collection of customers payment and not deposting the payment in bank on time which might be error of customer statments.

3- As Jacqueline is the only person in company who is managing all the work , she might be doing fraud with company money.

Answers 4(a) ii

To avoid these situation in future the company should follow the below points

1- The company should appoint the person to reconcile the bank statements so that there is double checking that funds are not mismanaged'

2- company should divide the work pressure of jacqueline so that she can concentrate on her work as she was managing in starting of business

3- company should have the accounting software which precheck the balances of customers

4- company should collect tthe funds from customers through the cheque .

5-the cash collector and cash depositer should be 2 different person

6-company should have audit of there accounts .