2020 BGSS 3N POA EOY P1 Q2
2 Matthew owns a car repair workshop. The cash at bank account for April 2020 showed the following.
Cash at bank account | |||||
Date 2020 | Particulars | Cheque Number | Debit $ | Credit $ | Balance $ |
April 1 | Balance b/d | 3 580 Dr | |||
2 | Trade payable, Jill | 2017 | 720 | 2 860 Dr | |
5 | 4 800 | 7 660 Dr | |||
6 | 2018 | 1 100 | 6 560 Dr | ||
11 | Trade payable, Jing Xiang Trading | 2019 | 800 | 5 760 Dr | |
13 | Trade receivable, Nick Co. | 1 200 | 6 960 Dr | ||
16 | Trade payable, Mark Enterprise | 2020 | 3 310 | 3 650 Dr | |
23 | Trade receivable, Kent | 1 100 | 4 750 Dr | ||
30 | Rental | 1 800 | 2 950 Dr | ||
On May 1, the following bank statement was received by Matthew.
Date | Details | Payments $ | Receipts $ | Balance $ |
2020 | ||||
April 1 | Balance b/d | 3 580 Cr | ||
7 | Cash deposit | 4 800 | 8 380 Cr | |
8 | Cheque 2018 | 1 100 | 7 280 Cr | |
14 | Cheque 2017 | 720 | 6 560 Cr | |
15 | Credit transfer: Commission income | 310 | 6 870 Cr | |
18 | Cheque 2020 | 3 310 | 3 560 Cr | |
19 | Cheque deposit | 1 200 | 4 760 Cr | |
20 | Direct payment: Utilities | 170 | 4 590 Cr | |
30 | 250 | 4 340 Cr |
REQUIRED
a. Prepare the adjusted cash at bank account for the month of April 2020. Bring the balance down to the start of the next month.
[4]
b. Prepare the bank reconciliation statement as at 30 April 2020.
[5]
c. Explain the entry of $4 800 in the cash at bank account on 5 April 2020.
[1]
d. State a reason why cheques would be returned as dishonoured by the bank.
[1]
[TOTAL 11]
The business received a cheque of $4 800 for a sale of goods.
Any of the following reasons or other acceptable answers:
– cheque was post-dated
– cheque had expired
– amount in words did not match amount in figures
– information was not correct e.g. wrong signature
– there was insufficient funds in the payor’s account