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Chapter 5, Problem 8FPP

a)

Summary Introduction

To determine: The comment on the ethics of banks and other financial institutions.

b)

Summary Introduction

To determine: Whether a lesson to be learned from person M’s experience.

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On Thursday 25th August, 2022, George deposited a cheque from Second Hand Cars Limited for US$100,000 via the automated teller machine. On Tuesday 30th August, 2022, George tried to pay his credit card bill via online banking but noticed that his bank  account is frozen. He later received a call from the bank. The bank called to find out where the $100,000 came from. His response was that it was written on the cheque and he angrily hung up, wondering aloud why the bank would call to ask him such a stupid question. Notwithstanding, a Suspicious Activity Report is filed by the Bank against George. On Thursday 1st September 2022, the police called George and ask him to come down to the police station to answer some questions about the cheque for $100,000 that he deoposited into his account on Thursday 25th August, 2022. Advise George and the Bank.
Ms. Sara has started a Furniture Manufacturing Company and opened a Business bank account in Bank Muscat and every month end he checks his Cash book maintained by his accountant Mr. Ali in the company with the Bank book maintained by the banker. His Cash Book balance on 31st December 2019, was OMR 22,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Sara asked his accountant Mr. Ali to do detail Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26th December, four cheques of OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020.Sara has invested money in shares of Al Maha Company and the bank has collected dividends and Credited in Bank Book, but not debited in Cash Book OMR 1,750.The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions…
Mr. Salim has started a Biscuit Manufacturing Company and opened a Business bank account in National Bank of Oman and every month end he checks his Cash book maintained by his accountant Mr. Asim in the company with the Bank book maintained by the banker. His Cash Book balance on 31st December 2019, was OMR 12,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Salim asked his accountant Mr. Asim to do detailed Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26th December, four chequesof OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020. One of his customer Ali has paid cheque of OMR 1,500 which is entered in cash book but omitted to be sent to Bank. The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions of Salim, Bank met a pay…
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