2020 SASS 3E POA EOY P2 Q1

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.

Debit

Credit

Balance

 

2020

  

$

$

$

 

Sep 1

Balance b/d

   

1 890

Dr

       4

Rent 

1079

 

1 900

10

Cr

       5

Sales revenue

 

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

Sales revenue

 

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

Bank statement

  

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

Bank charges 

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]

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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

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