Reference no: EM133038429

Question - On 30 April 2021, Bernard's Cash Book showed a debit balance of RM 7,800. On the same date, the Bank Statement had a credit balance of RM 9,155.

After checking the Cash Book against the Bank Statement, the following differences were found:

(i) Bernard issued a cheque to a supplier, CT Enterprise RM 3,600 had not been presented by the bank.

(ii) Two cheques received from customers for RM 1,500 and RM 825 respectively had not been credited by the bank.

(iii) Dividends credited direct to the account by the bank amounted to RM 80 was not recorded in the Cash Book.

(iv) The bank had made a standing order for the hire purchase instalment of RM 1,200. It had not been recorded by the business.

(v) A cheque for RM 240 banked had been returned by the bank marked "refer to drawer", but it had not been written back in the Cash Book.

(vi) A credit customer, Gary made a credit transfer to Bernard's bank account for debts settlement. This amount was RM 1,800.

(vii) A cheque for RM 80 drawn for stationery had been entered in the Cash Book as a receipt.

(viii) A cheque issued to Hock Guan for RM 300 was entered correctly in the business books but had been recorded on the bank statement as RM 500.

Required -

(a) Draw up Bank Reconciliation Statement as at 30 April 2021, reconciling the Bank Statement balance with the balance on the Cash Book.

(b) (i) Complete the Adjusted Cash Book and carried forward the adjusted balance;

(ii) Prepare Bank Reconciliation Statement as at 30 April 2021 to reconcile the adjusted Cash Book balance with the Bank Statement balance.

(c) State briefly any four reasons for the differences occurring between the Cash Book balance and the Bank Statement balance.