2020 SMSS 3E POA EOY P2 Q4

2020 SMSS 3E POA EOY P2 Q4

4 Simon provided the business cash at bank account for April 2020.

Cash at bank account

Date

2020

Particulars

Cheque

Debit $

Credit $

Balance $

Apr 1

Balance b/d

   

4 400 DR

       2

Sally

 

800

 

5 200 DR

       6

Cash in hand 

 

660

 

5 860 DR

       9

Lucy Shoes

 

2 100

 

7 960 DR

      12

Rain

120008

 

120

7 840 DR

      20

Cindy 

120009

 

350

7 490 DR

      25

Sales revenue

 

920

 

8 410 DR

      30

Utilities 

120010

 

380

8 030 DR

The bank statement received for April is as follows:

Bank statement

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

Bank charges

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]

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