P3-1A

debit credit
S.no
. $ $
1 cash 25000
ordinary share capital 25000

2 office rent 900

cash 900

3 office equipment 2800

cash 2800

4 advertising (chicago tribune) 200

accounts payable(chicago tribune) 200

5 office supplies 500

cash 500

6 cash 1000
accounts receivable 9000
servce revenue 10000

7 dividends paid 400

cash 400

8 accounts payable chicago tribune 200

cash 200

9 salary expense 1200

cash 1200

10 cash 9000
accounts receivable 9000

E4-3:
a.
1. As the cashier is experienced there is a chance of theft.
2. They share a single cash register and a single cash drawer which increases the risk of
fraud so there is a lack of appropriate responsibility of transaction.
 3. Cash is never kept in locker as it is quite easy to steal.
4. The one who is receiving should not be responsible for reconciling it as he can easily
manipulate the records.
5. Depositing and recording are two different jobs so two different people should be
assigned as accountant can easily manipulate by recording a different amount or
depositing a lower amount.
b.
1. Cashier should be bonded.
2. There must be a separate cash register and a separate cash drawer for every clerk.
3. It must be kept by an accountant in a safe.
4. Different person should be responsible for both jobs.
5. Someone else must deposit the cash and accountant must then record it so this will
reduce the chances of fraud.

P4-3A:
a)

bak reconcilation as per jul 31:

Cash balance as per bank statement    $7,695.80

Add: deposits in transit $1,193.30

$8,889.10

Less: outstanding checks ($1,980.10)

Adjusted cash balance as per bank $6,909

Cash balance as per books $6,140

Add: collection of accounts receivable $1,520

$7,660

Less:

NSF check ($690)

Incorrectly recorded ($384-$348) ($36)

Bank service charges not recorded ($25)

Adjusted cash balance as per book $6,909