2020 SMSS 3E POA EOY P2 Q4
4 Simon provided the business cash at bank account for April 2020.
The bank statement received for April is as follows:
Date 2020 | Particulars | Withdrawal $ | Deposit $ | Balance $ |
Apr 1 | Balance b/d | 4 950 CR | ||
2 | Cheque deposit | 800 | 5 750 CR | |
3 | Cheque no. 120007 | 550 | 5 200 CR | |
4 | Standing order – insurance | 200 | 5 000 CR | |
6 | Cash deposit | 660 | 5 660 CR | |
10 | Cheque deposit | 2 100 | 7 760 CR | |
14 | Cheque no. 120008 | 210 | 7 550 CR | |
20 | Rejected cheque (10 April) | 2 100 | 5 450 CR | |
30 | 130 | 5 320 CR |
Additional information:
Simon’s manager discovered that the accountant made an error in recording the transaction on 12 April.
REQUIRED
a. Prepare the adjusted cash at bank account for April 2020.
[6]
b. Prepare the bank reconciliation statement as at 30 April 2020.
[4]
c. Name three items which can cause the difference between the ending balances of a bank statement and business’ cash at bank account.
[3]
d. Name and explain two types of internal control over cash.
[4]
[TOTAL 17]