The cash book of Intan shows an overdraft balance of RM80,000 on the 31 January 20X1. The Bank Statement for 31 January 20X1 shows an overdraft balance of RM90,900. After examining the two, the following are found:Credit side of the cash book cast short – RM1,000Premium on Life Insurance Policy paid on standing order – RM5,000Cheque recorded for collection but not sent to the bank – RM10,000Bank Charges recorded twice in the cash book – RM100Customer’s cheque returned by the bank as dishonoured – RM4,000Bill Receivable collected by the bank directly on the behalf of company – RM20,000Cheque received entered twice in the cash book – RM6,000Cheque issued but dishonoured on technical grounds – RM3,000Cheques deposited into the bank of worth RM45,000 but RM8,000 cheque was not collected by bank Required:Prepare a Bank Reconciliation statement for the month of 31 January 20X1, after making the necessary adjustments to the cash book.

Bank Reconciliation Statement is a summary of transactions between bank and cash prepared by the…

Answered: The cash book of Intan shows an…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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Question

The cash book of Intan shows an overdraft balance of RM80,000 on the 31 January 20X1. The Bank Statement for 31 January 20X1 shows an overdraft balance of RM90,900. After examining the two, the following are found:

Credit side of the cash book cast short – RM1,000
Premium on Life Insurance Policy paid on standing order – RM5,000
Cheque recorded for collection but not sent to the bank – RM10,000
Bank Charges recorded twice in the cash book – RM100
Customer’s cheque returned by the bank as dishonoured – RM4,000
Bill Receivable collected by the bank directly on the behalf of company – RM20,000
Cheque received entered twice in the cash book – RM6,000
Cheque issued but dishonoured on technical grounds – RM3,000
Cheques deposited into the bank of worth RM45,000 but RM8,000 cheque was not collected by bank

Required:

Prepare a Bank Reconciliation statement for the month of 31 January 20X1, after making the necessary adjustments to the cash book.

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