2020 SASS 3E POA EOY P2 Q1
1 The cash at bank account of Le’ Sherman and his bank statement for the month of September 2020 were as follows:
Cash at bank account | |||||||||||||||||||||
Cheque no. | Balance | ||||||||||||||||||||
2020 | $ | $ | $ | ||||||||||||||||||
Sep 1 | Balance b/d | 1 890 | Dr | ||||||||||||||||||
4 | Rent | 1079 | 1 900 | 10 | Cr | ||||||||||||||||
5 | 4 700 | 4 690 | Dr | ||||||||||||||||||
9 | E. Jay | 920 | 5 610 | Dr | |||||||||||||||||
11 | Darrell | 1080 | 3 910 | 1 700 | Dr | ||||||||||||||||
17 | Wages | 1081 | 2 300 | 600 | Cr | ||||||||||||||||
19 | 1 804 | 1 204 | Dr | ||||||||||||||||||
23 | Peng Yi | 1082 | 120 | 1 084 | Dr | ||||||||||||||||
24 | Phineas | 3 500 | 4 584 | Dr | |||||||||||||||||
27 | Insurance | 1083 | 350 | 4 234 | Dr | ||||||||||||||||
29 | W. Caeden | 1084 | 1 280 | 2 954 | Dr | ||||||||||||||||
30 | Joshua | 253 | 3 207 | Dr | |||||||||||||||||
Withdrawal | Deposit | Balance | |||||||||||||||||||
2020 | $ | $ | $ | ||||||||||||||||||
Sep 1 | Balance b/d | 2 210 | Cr | ||||||||||||||||||
3 | Cheque No 1078 | 320 | 1 890 | Cr | |||||||||||||||||
5 | Cash | 4 700 | 6 590 | Cr | |||||||||||||||||
7 | Cheque No 1079 | 1 900 | 4 690 | Cr | |||||||||||||||||
11 | Cash | 920 | 5 610 | Cr | |||||||||||||||||
12 | Direct payment: Utilities | 250 | 5 360 | Cr | |||||||||||||||||
13 | Cheque No 1080 | 3 910 | 1 450 | Cr | |||||||||||||||||
19 | Cash | 1 804 | 3 254 | Cr | |||||||||||||||||
22 | Credit transfer: R. Hari | 2 460 | 5 714 | Cr | |||||||||||||||||
24 | Cheque No 1081 | 2 300 | 3 414 | Cr | |||||||||||||||||
29 | Cash | 3 500 | 6 914 | Cr | |||||||||||||||||
30 | 60 | 6 854 | Cr | ||||||||||||||||||
REQUIRED
a. State one reason for preparing a bank reconciliation statement.
[1]
b. State with example, two ways of internal control Le’ Sherman may use to safeguard cash balances.
[2]
c. Update the cash at bank account at 30 September 2020 and bring down the new balance.
[5]
d. Prepare a bank reconciliation statement at 30 September 2020.
[5]
[TOTAL 13]
account for items not recorded due to timing differences e.g deposits in transit OR
account for errors in recording by the bank or the business. (any 1)
segregation of duties e.g. separate cash handling and cash recording duties
among different employees
custody of cash e.g. secure cash / cheques in locked storage, deposit cash daily
authorisation e.g. proper approvals for all payments from authorised personnel
bank reconciliation