Testbank to accompany
Accounting 8th Edition by John Hoggett, Lew Edwards, John Medlin, Matthew Tilling Tilling & Evelyn Hogg
Prepared by
Barbara Burns
© John iley & !ons "ustralia, Ltd #$%#
Testbank to accompany Accounting 8e
© John iley and !ons "ustralia, Ltd #$%#
%$#
Chapter 9: Cost accounting systems
Chapter 10: Cash management and internal control Multiple Choice % a b c d
hic hich h o' o' thes thesee does does not not repre represen sentt prop proper er inte interna rnall cont control rol o' cash cash rece receip ipts ts(( )aily ban*ing o' receipts Two people people opening opening the mail +ayi +aying ng acco accoun unts ts dire direct ctly ly out out o' o' the the cash cash regi regist ster er Bala Balanc ncin ing g the the cash cash regi regist ster er a'te a'terr eac each h empl employ oyee ees s shi' shi'tt
"-!E. / !ection %$#
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a b c d
How How man many y o' thes thesee are are 'eat 'eatur ures es o' o' good good int inter erna nall cont contro roll o' cash cash pay payme ment nts( s( % separation o' record0*eeping and the authority to sign che1ues # the use o' pre0numbered che1ues 2 preparing regular ban* reconciliation statements 3 one person having responsibility 'or all aspects o' a cash payment 4ne Two Three 5our
"-!E. / 6"ll e7cept the last item8 !ection %$#
2 a b c d
hic hich h o' o' the these se is not not a good good inte intern rnal al cont contro roll pra pract ctic ice( e( The use use o' the the periodi periodicc inventor inventory y system system 'or 'or stoc* stoc* control control The use o' passwords passwords 'or computer computer access Thee pre0nu Th pre0numb mber ering ing o' o' docum document entss Ta*ing a*ing out out a trial trial bal balanc ancee
"-!E. " 6The perpetual system has a greater number o' built0in controls8 !ection %$#
3 a b c d
The /ash The /ash !hor !hortt and and 4ver 4ver ledg ledger er acc accoun ount, t, whic which h recor records ds the the di' di''er 'erenc encee betw betwee een n the the tota totall o' the cash register tape and the actual cash counted 'rom the register, is9 /lose osed to to the the +ro'i o'it an and Lo Loss !um !umm mary acc account unt :ncluded :ncluded in the the ban* reconciliatio reconciliation n )edu )educt cted ed 'rom 'rom the the Ban Ban* * acc accou ount nt bala balanc ncee in in the the ledge edger r "ppe ppears on the the Balance !h !heet eet as as li liability
"-!E. " !ection %$# © John iley and !ons "ustralia, Ltd #$%#
%$2
Testbank to accompany Accounting 8e
; a b c d
hic hich h o' o' the these se is not not a prin princi cipl plee o' o' int inter erna nall con contr trol ol(( !epa !epara rati tion on o' reco record rd *eep *eepin ing g and and cust custod ody y o' o' ass asset etss )ivision o' responsibility responsibil ity 'or related transactions transa ctions "ppointing an an e7ternal au auditor +lac +lacin ing g e7c e7ces esss cas cash h on on 'i7 'i7ed ed depo deposi sitt to to ear earn n int inter eres estt
"-!E. ) !ection %$#
< a b c d
The corn corner erst ston onee o' o' the the inte intern rnal al cont contro roll o' o' cas cash h is9 is9 Thee ban* Th ban* rec recon onci cili liat atio ion n " strong strong sa'e sa'e " pett petty y cas cash h sys syste tem m Thee double Th double ent entry ry accou accounti nting ng syste system m
"-!E. " !ection %$2
= hic hich h stat statem emen entt rel relat atin ing g to to dis disho hono nour ured ed che1 che1ue uess is true true(( a They are are che1ues 'rom debtors debtors deposited deposited into into the 'irms 'irms ban* account account but but not paid paid by the drawers ban* due to lac* o' 'unds or 'or other reasons b They can can be ad>usted ad>usted 'or 'or by ma*ing ma*ing a negative negative entry in the the sales >ournal c They They must must be liste listed d in the the ban* ban* reconci reconciliat liation ion d They They appear appear as as credit creditss on the the ban* ban* statem statement ent "-!E. " !ection %$2
? Thee corr Th correc ectt orde orderr in in whi which ch the steps steps in the ban* ban* reconc reconcili iliat ation ion proce process ss occur occur is9 is9 % Tic* o'' the items in the prior reconciliation with the ban* statement # +repare the ban* reconciliation 2 Tic* o'' the cash >ournals with the ban* statement 3 @pdate the cash >ournals with untic*ed items 'rom the ban* statement a %, #, 2, 3 b 3, 2, #, % c %, 2, 3, # d %, 3, 2, # "-!E. / !ection %$2
© John iley and !ons "ustralia, Ltd #$%#
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Chapter 9: Cost accounting systems
A a b c d
hen hen rec recon onci cili ling ng a ban* ban* acco account unt with with a pos posit itive ive bala balanc nce, e, ban ban* * 'ees 'ees and and inte intere rest st char charge ged d by the ban* are9 are9 "dde "dded d to the the ban* ban* stat statem emen entt bala balanc ncee in the the reco reconc ncil ilia iati tion on )educted )educted 'rom the ban* ban* statement statement balance balance in in the reconcil reconciliation iation )educt ducted ed 'rom rom th the gen geneeral le ledge dger ba ban* ba balance "dde dded to the genera eral ledger ger ba ban* balance
"-!E. / !ection %$2
%$
a b c d
hile hile prep prepari aring ng the the ban* ban* reconci reconcilia liation tion !ara !ara discov discovere ered d that that the the ban* ban* had incorre incorrectl ctly y paid one one che1ue che1ue 'or a larger larger amount amount than was written written by the company 6ban* error8 error8 The ban* account account has has a positive positive balance balance The The proper procedure procedure is to9 to9 "dd the error rror to the the ban ban* * bal balan ance ce in the the gen gener eral al ledg ledgeer )educt the error error 'rom the ban* ban* balance balance in the the general general ledger ledger and noti'y the the ban* "dd "dd the the erro errorr to to the the ban* ban* sta state teme ment nt bal balanc ancee in the the rec reconc oncili iliati ation on and and not noti' i'y y the the ban* ban* )edu )educt ct the the err error or 'ro 'rom m the the ban ban* * stat statem emen entt bala balanc ncee in the the rec recon onci cili liat atio ion n
"-!E. / !ection %$2
%% %% a b c d
hen hen reconc reconcili iling ng the the ledge ledgerr with with the the ban* ban* statem statement ent 6assumi 6assuming ng a positive positive ban* ban* balan balance8 ce8 a returned 6dishonoured8 che1ue should be9 "dde "dded d to the the ban* ban* stat statem emen entt bala balanc ncee in the the reco reconc ncil ilia iati tion on !ubtracted !ubtracted 'rom 'rom the general ledger ban* ban* balance balance !ubtra btract cted ed 'rom rom the the ban ban* st stateme ement ba balance "dde dded to the genera eral ledger ger ba ban* balance
"-!E. B !ection %$2
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a b c d
The deposit deposit column column o' Jeremy Jeremy /ompany /ompanys ban* ban* stat stateme ement nt show showss a direct direct credit credit o' o' C%,$$$ "ssuming the account is not in overdra't, when reconciling the ban* account, this amount will be9 )educted )educted 'rom 'rom the ban* ban* statem statement ent balanc balancee in the reconci reconciliat liation ion "dded to to the ban* ban* statement statement balance balance in the the reconciliati reconciliation on )educte )educted d 'rom 'rom the the gener general al ledger ledger ban* balance balance "dded "dded to the gene general ral ledge ledgerr ban* ban* balan balance ce
"-!E. ) !ection %$2
© John iley and !ons "ustralia, Ltd #$%#
%$;
Testbank to accompany Accounting 8e
%2 a b c d
"ssuming "ssumi ng the the acco account unt is not in overdra overdra't, 't, when when recon reconcil ciling ing the ledger ledger with with the the ban* ban* statement a deposit in transit should be9 !ubt !ubtra ract cted ed 'rom 'rom the the gene genera rall ledg ledger er ban* ban* bala balanc ncee "dded to the general ledger ban* balance balance !ubt !ubtra ract cted ed 'or 'orm m the the ban* ban* stat statem emen entt bala balanc ncee in in the the rec recon onci cili liat atio ion n "dde "dded d to to the the ban* ban* stat statem emen entt bal balan ance ce in the the rec recon onci cili liat atio ion n
"-!E. ) !ection %$2
%3
a b c d
The mun municip icipalit ality y o' Dreenval Dreenvalee receiv received ed its its mon monthl thly y ban* ban* stateme statement nt show showing ing a bala balance nce o' C#=,<#A /r at 2% January 4n this date cash received 'rom ratepayers and not yet deposited at the ban* totalled C?;= and outstanding che1ues were C3,2#% The amount to appear as cash at ban* on the 2% January balance sheet is9 C##,3;% C#?,3?< C2%,$A2 C#3,%<;
"-!E. ) !ection %$2
%;
a b c d
!torybo !toryboard ard Ltd had an unad> unad>uste usted d ban* ban* accou account nt ledge ledgerr balan balance ce at at 2% May o' C?$$ C?$$ )r )r The ban* statement at the same date showed a balance o' C%$A$ /r Ban* service charges 'or the month were C%$ and outstanding che1ues totalled C3$$ The ban* statement revealed that the ban* had collected dividends 'or the 'irm o' C;$ and a deposit o' C%;$ is not yet recorded on the statement hat is the corrected ban* account ledger balance at 2% May( C33$ C?3$ CAA$ C%$A$
"-!E. B 6C?$$ 0 C%$ C;$8 !ection %$2
© John iley and !ons "ustralia, Ltd #$%#
%$<
Chapter 9: Cost accounting systems
%<
a b c d
The munic The municip ipali ality ty o' !ton !tonyba yban* n* had had an unad> unad>ust usted ed ledge ledgerr ban* ban* balanc balancee at 2% Mar March ch o' C#? $$$ )r The ban* statement 'or the month shows a balance o' C%< 2$$ /r :t also shows ban* charges o' C#;; and dividends directly paid into the ban* o' C;$$ )eposits not yet credited are C%3 ;3; and unpresented che1ues are C# <$$ hat is the cash at ban* ledger balance at 2% March( C#? #3; C3$ %A$ C2A A3; C#2 $3;
"-!E. " 6C#? #3; F CC#?,$$$ 0 C#;; C;$$8 !ection %$2
%=
a b c d
The ban* The ban* sta state teme ment nt o' a busi busines nesss show showss an over overdra dra't 't o' o' C%$ C%$ $$$ at at 2% Mar March ch :n reconciling the account at that date indicate the treatment you would give to /he1ue -o 3<% 'or C2$ that was drawn on #; March but had not yet been presented 'or payment .ecord in the cash receipts >o >ournal .ecord in the cash payments payments >ournal "dd "dd to to the the ban* ban* stat statem emen entt bal balan ance ce in the the ban ban* * rec recon onci cili liat atio ion n !ubt !ubtra ract ct 'ro 'rom m the the ban* ban* ssta tate teme ment nt bal balan ance ce in in the the ban* ban* rec recon onci cili liat atio ion n
"-!E. / !ection %$2
%?
a b c d
Gathryn Gathryns account account is not not in overdr overdra't a't hen hen pre prepa pari ring ng the the ban* ban* reco reconci ncili liat ation ion she she 'ound that the ban* had incorrectly debited her account with C%#$ The proper procedure procedure is to9 to9 )educt C%#$ 'rom 'rom the ban* balance balance in the general general ledger ledger and and noti'y noti'y the ban* ban* )educt C%#$ 'rom 'rom the ban* balance balance in the general general ledger ledger "dd C%#$ to to the ban* ban* statement statement balance balance in the ban* reconcili reconciliation ation and and noti'y noti'y the ban* ban* )o nothin nothing g as the ban* ban* will will ad>ust ad>ust the error error when when it balan balances ces
"-!E. / !ection %$2
© John iley and !ons "ustralia, Ltd #$%#
%$=
Testbank to accompany Accounting 8e
%A
The 2$ "pr The "pril il ban* ban* reco reconci ncili liati ation on o' M /o was was prepa prepared red usin using g the in'o in'orm rmat ation ion belo below9 w9 4utstanding deposit C% $$$ Ledger ban* balance C# =$$ )r 6ad>usted8 @npresented che1ues C<#$
hat was the ban* statement balance at 2$ "pril( a C2 $?$ )r b C# 2#$ /r /r c C3 2#$ /r d C# 2#$ )r "-!E. B 6C# 2#$ /r F C# =$$ 0 C% $$$ C<#$8 !ection %$2
#$ a b c d
hic hich h o' thes thesee is not not an an esse essenti ntial al 'ea 'eatu ture re o' o' the the impre imprest st pet petty ty cas cash h syste system( m( )eci )ecidi ding ng on a 'i7 'i7ed ed sum sum tha thatt bec becom omes es the the imp impre rest st amou amount nt or 'lo 'loat at !everal !everal people being authorised authorised to reimburse reimburse e7penses e7penses /ash /ash in the 'und 'und toge togeth ther er with with vou vouch cher erss alw alway ayss e1ua e1uall llin ing g the the impre imprest st amoun amountt .epl .eplen enis ishm hmen entt o' o' the the 'und 'und 'or 'or the the e7ac e7actt amo amoun untt spe spent nt in the the per perio iod d
"-!E. B !ection %$3
#% a b c d
:' the the pett petty y cash cash 'und 'und was not reimburs reimbursed ed at at the the time time the the 'inan 'inancia ciall state statemen ments ts were were prepared9 prepared9 E7penses E7penses would would be underst understate ated d and e1uit e1uity y overstat overstated ed +etty cash asset would be overstated and e7penses e7pen ses understated +etty +etty cash e7pens e7penses es would would be oversta overstated ted and ban* ban* would would be understa understated ted E7penses would be be overstated overstated and and petty petty cash asset would be understated understated
"-!E. " !ection %$3
## ## Thee pet Th petty ty cash cash acco accoun untt is is wha whatt typ typee o' o' acc accou ount nt(( a "sset b E7pense c :ncome d Liability "-!E. " !ection %$3
© John iley and !ons "ustralia, Ltd #$%#
%$?
Chapter 9: Cost accounting systems
#2 a b c d
" cash budget measures( Estimated li1uidity Estimated Estimated pro'itabil pro'itability ity Estimated wor*ing capital Estimated 'i 'inancial po position
"-!E. " !ection %$;
#3 Thee entry Th entry at the the end end o' the the mont month h to reim reimbu burse rse the the pett petty y cash cash 'or 'or the amo amount unt spent spent is9 is9 a )ebit )ebit pet petty ty cash cash e7pen e7penses ses credi creditt ban* b )ebit petty petty cash cash asset asset credit credit petty petty cash e7penses e7penses c )ebit )ebit pet petty ty cash cash asset asset credi creditt ban* ban* d )ebit )ebit ban* ban* credit credit pett petty y cash cash asset asset "-!E. " !ection %$3
#; #; a b c d
hic hich h o' thes thesee is is not not an adva advant ntag agee o' cash cash budg budget etin ing( g( :t help helpss to to ma mainta intain in the the cre credi ditt sta stand ndin ing g o' o' the the busi busine ness ss :t encourages encourages care'ul assessment assessment o' all proposed proposed e7penditu e7penditures res :t *eeps to a minimum idle cash 'unds :t increases sales
"-!E. ) !ection %$;
#< #< a b c d
The stat The statem emen entt rela relati ting ng to to a cas cash h budg budget et tha thatt is true true is9 is9 :t is a sta state teme ment nt o' e7pe e7pect cted ed incom ncomee and and e7pen 7pense sess -on0cash -on0cash items items such as depreciati depreciation on are included included :t is usual ually pre prepared on a wee*ly basi basiss Thee shor Th shorte terr the the time time period period invol involve ved d the the easi easier er it is to pred predic ictt 'utu 'uture re cash cash 'low 'lowss
"-!E. ) !ection %$;
© John iley and !ons "ustralia, Ltd #$%#
%$A
Testbank to accompany Accounting 8e
#=
a b c d
Bec*er Bec*er /arpets /arpets ma*es ma*es all all sale saless on credit credit with with ;$I o' the the paym payment ent receive received d in the mon month th o' sale, 3$I in the month 'ollowing the sale and the remaining %$I in the subse1uent month Budgeted sales are as 'ollows9 January C%$$ $$$ 5ebruary C%3$ $$$ March C%#$ $$$ The budgeted receipts 'rom debtors during March are9 CA< $$$ C%%< $$$ $$$ C%#< $$$ C%#$ $$$
"-!E. / 6C%$$ $$$ %$I8 6C%3$ $$$ 3$I8 6C%#$ $$$ ;$I8 !ection %$;
#?
a b c d
Bec*er Bec*er /arpets /arpets ma*es ma*es all all sale saless on credit credit with with ;$I o' the the paym payment ent being being rece receive ived d in the month o' sale, 3$I in the month 'ollowing sale and the remaining %$I in the subse1uent month Budgeted sales are as 'ollows January C%$$ $$$ 5ebruary C%3$ $$$ March C%#$ $$$ The budgeted balance o' debtors at 2% March is9 C%3 $$$ C<$ $$$ C=3 $$$ C%#$,$$$
"-!E. / 6C%#$ $$$ ;$I C%3$ $$$ %$I8 !ection %$;
#A
Malaysi Malaysian an /arp /arpets ets ma*es ma*es all all sale saless on credit credit,, with with <$I <$I o' o' the the payme payment nt rece receive ived d in the month o' sale and 3$I in the month 'ollowing sale Budgeted sales are 5ebruary C %$ $ $$ $ March C%#$ $$$ hat is the estimated amount received 'rom debtors in March( a C##$ $$$ b C%#$ $$$ c C%%# $$$ d C%$? $$$ "-!E. / 6C%%# $$$ F <$I 7 C%#$ $$$ 3$I 7 C%$$ $$$8 !ection %$;
© John iley and !ons "ustralia, Ltd #$%#
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Chapter 9: Cost accounting systems
2$
a b c d
/hong /hong :nc :nc ma*es ma*es all o' its its purch purchases ases on credi credit t ;$I ;$I are are paid paid in the the month month o' purc purchase hase 2$I during the month 'ollowing the purchase and #$I in the second month 'ollowing the purchase Diven the 'ollowing data, determine the cash paid to creditors during month three Month % # 2 /redit +urchases C=$ $$$ C;$ $$$ C?$ $$$ C
"-!E. " 6C=$ $$$ #$I8 6C;$ $$$ 2$I8 6C?$ $$$ ;$I8 !ection %$;
2% a b c d
hic hich h o' thes thesee is not not a broad broad pri princi ncipl plee o' cash cash man manage ageme ment nt that that hel helps ps ensur ensuree that that a business business remains remains solvent( solvent( /oll /ollec ectt cash cash owin owing g 'ro 'rom m acc accou ount ntss rece receiv ivab able le as as 1uic 1uic*l *ly y as poss possib ible le +ay accounts accounts payable payable >ust be'ore be'ore the the due date rather rather than than when when the statement statement is 'irst received Buy al all ca capital e1 e1uipm ipment on hire ire pu purchase hase :nves :nvestt any any cash cash tha thatt is surplu surpluss to to re1u re1uir irem ement entss to earn earn a retu return rn 'or 'or the the busin busines esss
"-!E. / !ection %$<
2# a b c d
hic hich h o' o' thes thesee princ principl iples es o' cash cash mana managem gemen ents ts is untru untrue( e( There Th ere are are dis disad advan vanta tages ges 'or a busi busine ness ss in holdi holding ng very very low low leve levels ls o' inven invento tory ry The longer longer the the operating operating cycle cycle the longer it ta*es ta*es to pay pay creditors creditors :t is is gene genera rall lly y a mis mista ta*e *e to to dela delay y payi paying ng cred credit itors ors i' it it mean meanss disco discoun unts ts on on o''e o''err are are lost lost Dene Denera rall lly y cash cash sur surplu pluss to re1ui re1uire reme ment ntss shoul should d be used used to to ac1ui ac1uire re nec necess essar ary y non0 non0cur curre rent nt assets rather than being *ept on 'i7ed deposit
"-!E. B !ection %$<
22 a b c d
The ratio ratio that that measu measures res solvency solvency by relating relating cash 'lows 'lows 'rom 'rom operatin operating g activi activities ties to total liabilities is the9 gearing ratio short0term short0term cash 'low ade1uacy ade1uacy ratio cash 'low ade1uacy ratio turnover o' cash 'low ratio
"-!E. / !ection %$=
© John iley and !ons "ustralia, Ltd #$%#
%$%%
Testbank to accompany Accounting 8e
23 a b c d
The abil The abilit ity y o' a 'ir 'irm m to to pay pay its its debts debts as they they 'al 'alll due due is *now *nown n as9 as9 cash management being in in surplus surplus solvency the acid test
"-!E. / !ection %$=
2; 2; a b c d
hic hich h o' the these se is is not not incl includ uded ed in in the the de'i de'ini niti tion on o' o' cas cash( h( Bills receivable E5T+4! E5T+4! transacti transactions ons +etty cash /he1ue
"-!E. " !ection %$%
© John iley and !ons "ustralia, Ltd #$%#
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Chapter 9: Cost accounting systems
Fill in the blanks
%
The stat The statem emen entt list listin ing g the the di'' di''er erenc ences es bet betwe ween en the the ledg ledger er ban ban* * bala balance nce and and the the bala balanc ncee on the ban* statement is called the bKKKKKKK rKKKKKKKKKKKKKKKKKK statement
"-!E. ban* reconciliation !ection %$2
#
/he1 /he1ue uess ban*e ban*ed d but but unpa unpaid id bec becau ause se o' o' lac* lac* o' o' 'und 'undss in the the draw drawer ers s acc accoun ountt are are call called ed dKKKKKKKKKKKKKKKKKK che1ues
"-!E. dishonoured !ection %$2
2
" depos deposit it ent entere ered d in the the 'irm 'irms boo* boo*ss but but not not yet yet rec recor orde ded d on the the ban* ban* sta state teme ment nt is is re'erred to as an oKKKKKKKKKKKKKK deposit
"-!E. outstanding !ection %$2
3
hen hen pre prepa pari ring ng the the ban ban* * reco reconci ncili liat ation ion,, wher wheree the the ban* ban* is is not not in overdr overdra't a't,, unpr unprese esent nted ed che1ues are 6deductedadded8 KKKKKKKKKKKKK 6'romto8KKKKKK the ban* statement credit balance
"-!E. deducted, 'rom !ection %$2
;
:' the cash cash regi registe sterr tape tape at at the the end end o' o' the the shi shi't 't show showss that that the the tot total al sal sales es record recorded ed are are C%,3AA but the cash in the register is C%,3#; the /ash !hort and 4ver account is debitedcredited with the di''erence o' C=3
"-!E. debited !ection %$#
<
The KKKKK The KKKKKKKK KKKK K KKKK KKKKKKK KKKKKK KKK 'und 'und is is used used to ma*e ma*e cash cash pay payme ments nts 'or minor minor e7pen e7pendi ditur tures es such as postage stamps, co''ee and 'ares
"-!E. petty cash !ection %$3
© John iley and !ons "ustralia, Ltd #$%#
%$%2
Testbank to accompany Accounting 8e
=
The entr The entry y to reple repleni nish sh the the pet petty ty cash cash 'und 'und at at the the end end o' o' the the perio period d is to 6de 6debi bit tcr cred edit8 it8 KKKKKKKKK each o' the various various e7pense e7pense accounts accounts and and to 6debit 6debitcredit8 credit8 KKKKKKKKK KKKKKKKKK the ban* account account
"-!E. debit credit !ection %$3
?
" pett petty y cash cash sys syste tem m wher wheree the the cash cash in in the the 'und 'und,, toge togeth ther er wit with h vouch voucher erss 'or 'or the the amoun amounts ts spent always e1uals the 'loat, is *nown as the KKKKKKKKKKKK system
"-!E. imprest !ection %$3
A
" cKKKK cKKKKKK KKKKK KKKKKK KKK bKK bKKKKK KKKKKK KKKKKK KKKKK KK is a repor reportt whic which h pro> pro>ec ects ts 'ut 'uture ure cash cash rec recei eipt ptss and and payments payments over time
"-!E. cash budget !ection %$;
%$
The abil The abilit ity y o' an an enti entity ty to to pay pay its its debt debtss as and and when when they they 'all 'all due due is is *nown *nown as sKKKKKKKKKKKKKKKK
"-!E. solvency !ection %$=
© John iley and !ons "ustralia, Ltd #$%#
%$%3
Chapter 9: Cost accounting systems
Eam Type !uestions !"E#T$%& 10'1
The 'ollowing in'ormation is available 'or )arrens !ur'boards 'or the month ended 2$ June #$%%9 @nad>usted ledger ban* balance CA,#2##? )r Balance as per ban* statement C?,==A;3 /r /he1ue ;AA was correctly recorded on the ban* statement 'or C3#$ but incorrectly recorded in the cash payments >ournal 'or C#3$ @npresented che1ues9 <$? C%,A3$;# <%# C%,
.EN@:.E)9 a8
!et up up the ledge ledgerr cash at ban* ban* accoun account, t, enter enter the the necessa necessary ry ad>ust ad>ustmen ments ts to updat updatee the account to 2$ June #$%% and balance the account
b8
+repare a ban* reconciliation reconcil iation statement at 2$ June J une #$%% to reconcile the ad>usted ledger ban* balance with the ban* statement balance
!"E#T$%& 10'(
4n % !eptember #$%% the records o' Thai Enterprises showed that the cash at ban* ledger account had a balance o' C3,2$$ credit The ban* reconciliation at the 2% "ugust contained only one di''erence between the ban* statement balance and the ledger balance, che1ue number %=$ 'or C3$$ which was listed as unpresented The 'ollowing in'ormation is available 'or !eptember #$%% CASH RECEIPTS JOURNAL
)ate #$%%
!ept
+articulars
"mount C
3
!ales "ccounts receivable %= "ccounts receivable #? :nterest #A !undry
2$ $ 2,=#$ 2,$$$ <$ $ 2,#3$ %$,?<$
/ash at ban* C
3 ,$ # $ 2 ,$ $ $ 2 ,? 3 $ C % $ ,? < $
CASH PAYMENTS JOURNAL
)ate #$%%
!ept
+articulars
3
Lease e7penses
/he1ue -umber
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Thai Enterprises
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ABC Bank
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.EN@:.E)9 a8 !et up the ledger ledger ban* account and post the unad>usted unad>usted cash cash >ournal >ournal totals totals to the the account .ecord the necessary ad>ustments up to the 2$ !eptember and balance the account b8 +repare a ban* reconciliation reconcilia tion statement at 2$ !eptember !eptembe r #$%% to reconcile the ad>usted ledger cash at ban* balance with the ban* statement balance
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Chapter 9: Cost accounting systems
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