On 31st December, 2021, the bank column of Abacus Enterprise Sdn Bhd's (hereafter ‘Abacus’) cash book showed a debit balance of RM2,500. The monthly bank statement written-up to 31st December, 2021 showed a credit balance of RM3,950.
On checking the cash book with the bank statement, it was discovered that the following transactions had not been entered in the Cash Book:
i) Dividend of RM240 had been paid directly to the bank.
ii) A credit transfer - Customs and Excise refund of RM260 - had been collected by the bank.
iii) Bank charges RM30.
iv) A direct debit of RM70 for the ASTRO subscription had been paid by the bank.
v) A standing order of RM200 for Abacus's loan repayment had been paid by the bank.
vi) TNT's deposit account balance of RM1,400 was transferred into his bank current account.
A further check revealed the following items:-
i) Two (2) cheques drawn in favour of All RM250 and Faizal RM290 had been entered in the cash book but were not presented for payment.
ii) Cash of RM90 and cheques amounted RM600 had been paid to the bank on 31st December, 2021 but were not credited by the bank until 2nd January, 2022.
You are required to:
- Starting with the debit balance of RM2,500, update the Cash Book (Bank Column) until the current date and show the balance of the bank statement.
- Prepare a Bank Reconciliation Statement as at 31st December, 2021.
(M2022-1 Q8, 20 marks)