Reference no: EM132581882

Question 1.) From the following, Bank Reconciliation Statement to find out the causes of difference in two balances as at August 31st, 2018 for Four Star (Pvt.) Ltd.

(i) Bank balance according to bank statement is ........................................................ 17,000

(ii) Cheque issued but not encashed during the August ......................................... 2,200

(iii) Dividends on shares collected by banker ..................................................... 2,300

(iv) Interest charged by the bank recorded twice in the Cash Book ........................ 500

(v) Cheque deposited as per Bank Statement not entered in Cash Book .................. 3,400

(vi) Clubs dues paid by bank as per standing instruction not recorded in Cash Book ... 1,200

(vii) Uncredited cheques to bank .......................................................... 3,900

(VIII) Company cash book debit balance....................................... 13,700

i) Prepare the adjusted company cash book as at 31st of August 2018.

ii) Prepare the bank reconciliation statement as at 31st August 2018.

Question 2.) A Motor vehicle was purchased on 01.01.2018 at a value of LKR 2,400,000 if the depreciation rate is 20% per annum and the depreciation method used is straight line method.

This Motor vehicle has been sold on 30.06.2019 for LKR 2,000,000.

Mention all the appropriate journal entries for above Scenario including the asset disposal account records.