The owner of Ryzen Trading, Mr. Bon has been informed by the business' bookkeeper that there is an overdraft of RM101,000 in the cash book as at 30 June 2020 for the business. However, this amount is difference with the amount stated in the bank statement that Mr. Bon received yesterday which showed a debit balance of RM105,680. Therefore, Mr. Bon has requested the bookkeeper to find the causes of the discrepancies and make necessary adjustments when needed. The bookkeeper has found that an amount of deposit totaling RM76,540 does not appear on the bank statement. In addition, there are two cheques that have not yet presented for payment, cheque number RT15 and RT30 amounting RM8,050 and RM6,900 respectively. Besides, the bookkeeper has found four different records made as at 30 June 2020 in the business bank account as follows: the bank RM RM Cheque clearance charges Fund transfer charges Credit card levy Interest on overdraft 1,000 2,430 1,630 500 The bank has also dishonored a cheque obtained from MMS Trading which amounted to RM2,600. The discount allowed was RM300 on this cheque. The bookkeeper has also found the following: A payment record of RM30,000 received from PopArt Enterprise was found in the bank statement, but not in the cash book. (1)
The owner of Ryzen Trading, Mr. Bon has been informed by the business' bookkeeper that there is an overdraft of RM101,000 in the cash book as at 30 June 2020 for the business. However, this amount is difference with the amount stated in the bank statement that Mr. Bon received yesterday which showed a debit balance of RM105,680. Therefore, Mr. Bon has requested the bookkeeper to find the causes of the discrepancies and make necessary adjustments when needed. The bookkeeper has found that an amount of deposit totaling RM76,540 does not appear on the bank statement. In addition, there are two cheques that have not yet presented for payment, cheque number RT15 and RT30 amounting RM8,050 and RM6,900 respectively. Besides, the bookkeeper has found four different records made as at 30 June 2020 in the business bank account as follows: the bank RM RM Cheque clearance charges Fund transfer charges Credit card levy Interest on overdraft 1,000 2,430 1,630 500 The bank has also dishonored a cheque obtained from MMS Trading which amounted to RM2,600. The discount allowed was RM300 on this cheque. The bookkeeper has also found the following: A payment record of RM30,000 received from PopArt Enterprise was found in the bank statement, but not in the cash book. (1)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The owner of Ryzen Trading, Mr. Bon has been informed by the business' bookkeeper
that there is an overdraft of RM101,000 in the cash book as at 30 June 2020 for the
business. However, this amount is difference with the amount stated in the bank
statement that Mr. Bon received yesterday which showed a debit balance of
RM105,680. Therefore, Mr. Bon has requested the bookkeeper to find the causes of the
discrepancies and make necessary adjustments when needed.
Q2.
The bookkeeper has found that an amount of deposit totaling RM76,540 does not appear
on the bank statement. In addition, there are two cheques that have not yet presented
for payment, cheque number RT15 and RT30 amounting RM8,050 and RM6,900
respectively. Besides, the bookkeeper has found four different records made by the bank
as at 30 June 2020 in the business bank account as follows:
RM
RM
Credit card levy
Cheque clearance charges
Fund transfer charges
1,000
500
2,430
1,630
Interest on overdraft
The bank has also dishonored a cheque obtained from MMS Trading which amounted
to RM2,600. The discount allowed was RM300 on this cheque. The bookkeeper has
also found the following:
A payment record of RM30,000 received from PopArt Enterprise was found in
the bank statement, but not in the cash book.
(1)
Transcribed Image Text:Q2. (Continued)
A debit order in favor of Coverme Limited for an insurance premium was shown
in the bank statement for RM6,930.
(2)
(3)
Mr. Amar who rents the six vending machines from Ryzen Trading has
deposited directly to the bank an amount of RM42,000 for his monthly payment.
REQUIRED:
(a)
Prepare the Adjusted Cash Book (bank column) of Ryzen Trading as at 30 June
2020.
(b)
Prepare the Bank Reconciliation Statement as at 30 June 2020.
In your opinion, why it is significant for Mr. Bon to request the bookkeeper to
prepare the bank reconciliation for Ryzen Trading?
(c)
(d)
Briefly explain the following item and its effects on the business accounting
records:
(i)
Unpresented cheque.
(ii) Dishonored cheque.
(iii) Uncredited cheque.
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