Universal Bhd had a debit balance of RM56,500 in the cashbook on 31 December 2021. The Bank Statement received for the month showed a credit balance of RM76,710. On comparing the cashbook with the Bank Statement, the following were discovered: A deposit entry of RM19,500 which appears in the cashbook at 31 December 2021 had not yet been credited in the bank statement. The bank had collected on the firm's behalf a check for RM30,360 being proceeds of a sale. A check amounting to RM10,500 which was recorded as a receipt in the cashbook was returned to the firm by the bank, stamped with the word "insufficient funds' The last check entered in the cash payment, No 1234, for RM3,630 appears in the bank statement as RM3,600. An examination of the cashbook reveals that the bank figure is correct. Check No 1236 for RM3,180 has been correctly debited in the bank statement but not shown in the cashbook of the firm. 6 The checks No1237 RM9,000 and No1238 RM21,000 drawn by the firm have not yet been presented to the bank. 7. The bank had paid out for RM600 for the firm as per standing order. This amount was yet to be recorded in the cashbook. 8. Bank charges amounting to RM450 appear on the Bank Statement but not in the firm's records. 9. The firm had recorded a check received for RM780 as a check for RM730. The bank statement showed a correct amount. 10. A monthly direct debit payable to a leasing company for RM6,000 was wrongly paid twice by the bank. Required: a) Prepare the bank reconciliation at 31 December 2021. b) Distinguished between direct debit and standing order, Provide an example for each one.
Universal Bhd had a debit balance of RM56,500 in the
The
Bank Statement received for the month showed a credit balance of RM76,710. On comparing
the cashbook with the Bank Statement, the following were discovered:
A deposit entry of RM19,500 which appears in the cashbook at 31 December 2021 had
not yet been credited in the bank statement.
The bank had collected on the firm's behalf a check for RM30,360 being proceeds of a
sale.
A check amounting to RM10,500 which was recorded as a receipt in the cashbook was
returned to the firm by the bank, stamped with the word
"insufficient funds'
The last check entered in the cash payment, No 1234, for RM3,630 appears in the bank
statement as RM3,600. An examination of the cashbook reveals that the bank figure is
correct.
Check No 1236 for RM3,180 has been correctly debited in the bank statement but not
shown in the cashbook of the firm.
6
The checks No1237 RM9,000 and No1238 RM21,000 drawn by the firm have not yet
been presented to the bank.
7.
The bank had paid out for RM600 for the firm as per standing order. This amount was
yet to be recorded in the cashbook.
8.
Bank charges amounting to RM450 appear on the Bank Statement but not in the firm's
records.
9. The firm had recorded a check received for RM780 as a check for RM730. The bank
statement showed a correct amount.
10. A monthly direct debit payable to a leasing company for RM6,000 was wrongly paid
twice by the bank.
Required:
a) Prepare the bank reconciliation at 31 December 2021.
b) Distinguished between direct debit and standing order, Provide an example for each one.
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