Answer & Explanation:

a) To update the cash book (bank column), we need to compare the

transactions in the cash book with those in the bank statement and
make adjustments accordingly.

- On June 1, the balance brought down from the previous month is

RM7,000.
- On June 4, a rent payment of RM400 was made by cheque (Chq No.
24778).
- On June 11, a stationery purchase of RM350 was made by cheque
(Chq No. 24779).
- On June 12, a sales receipt of RM4,000 was deposited into the bank
account (Chq No. 24780).
- On June 20, Johari Trading paid RM600 by cheque (Chq No.67894).
- On June 23, a payment of RM2,000 was made to Mikael by cheque
(Chq No.24781).
- On June 26, Fazil Enterprise paid RM500 by cheque (Chq No.74365).
- Finally on July 1st there is an opening balance brought forward from
previous month which is equal to closing balance.

b) To prepare a bank reconciliation statement as at June 30th:

Bank Statement Balance: The closing balance on the bank statement

is given as RM2,980.

Add: Outstanding Deposits: There are no outstanding deposits

mentioned in this question.

Less: Outstanding Cheques:

Cheque No.24782 for Tamil Chelvan amounting to RM650 has not been
presented for payment yet.
Cheque Book charges of RM20 have not been deducted from the bank
account yet.

Adjusted Bank Balance:

RM2,980 -RM650 -RM20 =RM2 ,310

c) Three reasons why balances in cash book and bank statement may
be unequal are:
1) Timing Differences: Transactions recorded in one record may occur
at different times than when they are recorded in the other record. For
example, a cheque issued on June 30th may not be presented for
payment until July, resulting in a difference between the cash book
and bank statement balances.
2) Errors: Mistakes in recording transactions or reconciling the
accounts can lead to differences between the cash book and bank
statement balances.
3) Bank Charges and Interest: Bank charges or interest earned may be
recorded by the bank but not yet recorded in the cash book, leading to
a difference in balances.

Answer & Explanation:

a) The purpose of preparing a bank reconciliation statement is to
reconcile the differences between the cash balance as per the
company's records (cash book) and the cash balance as per the bank
statement. This helps identify any errors, omissions, or discrepancies
in recording transactions and ensures that both records are accurate
and consistent.

b) To update the cash book (bank column), we need to compare the

transactions recorded in both the bank statement and cash book for
March 2019. We will adjust for any items that have not been recorded
or have been recorded incorrectly.

Based on the information provided:

- On March 7th, a cheque was issued to Lim Auto for RM450. This
transaction is missing from the cash book.
- On March 8th, a cheque was issued to Calmex Bhd for RM600. This
transaction is missing from the cash book.
- On March 10th, a cheque was issued to Ali for RM343. This
transaction is missing from the cash book.
- On March 28th, a cheque was issued to Ben for RM300. This
transaction is missing from the cash book.

Therefore, we need to add these amounts to update the cash book:

March 7: Lim Auto - RM450
March 8: Calmex Bhd - RM600
March 10: Ali - RM343
March 28: Ben - RM300

c) To prepare a bank reconciliation statement as at March 31st:

Bank Statement Balance (per banks statement): RM6,615

Add: Outstanding deposits:
- Cash deposit on March 3rd: +RM6,000

Adjusted Bank Statement Balance: RM12,615

Cash Book Balance (per company's records): RM7,800.20

Add: Deposits not yet credited by bank:
- Electronic fund transfer on March 4th: +RM1,500

Less: Outstanding checks:

- Cheque issued to Lim Auto on March 7th: -RM450
- Cheque issued to Calmex Bhd on March 8th: -RM600
- Cheque issued to Ali on March 10th: -RM343
- Cheque issued to Ben on March 28th: -RM300

Adjusted Cash Book Balance: RM8,607.20

Bank Reconciliation Statement:

Adjusted Bank Statement Balance (per bank): RM12,615

Adjusted Cash Book Balance (per company): RM8,607.20

Add/(Less): Adjustments for items not yet recorded

To prepare the updated Cash Book, we need to reconcile the Cash Book (Bank
Column) and the Bank Statement.
Step 1: Compare the opening balances
The opening balance in the Cash Book is RM2,840, and in the Bank Statement, it is
also RM2,840. Since they match, no adjustment is needed.

Step 2: Compare deposits

In the Cash Book:
- Woddy Motor deposit of RM400 on Feb 7
- Sales deposit of RM550 on Feb 10
- Sales deposit of RM600 on Feb 15

In the Bank Statement:

- Deposit from Woddy Motor of RM400 on Feb 4
- Deposit of RM550 on Feb 10
- Deposit of RM600 on Feb 15

All deposits match between both records.

Step 3: Compare cheques issued/paid out

In the Cash Book:
- Tok Suppliers cheque payment of RM370 on Feb 2
- Sharil cheque payment of RM200 on Feb 11
- King Shape cheque payment of RM150 on Feb22
- MH Enterprise cheque payment (unrecorded)

In the Bank Statement:

Cheque payments made by KalbuMoo Enterprise are listed as follows:
- Cheque to Tok Suppliers forRM370onFeb9
- Cheque to Sharil forRM200onFeb14
- Cheque to King Shape forRM150onFeb21

Since there is an unrecorded cheque payment to MH Enterprise in the Bank

Statement, we need to deduct that amount from our balance.

Step4: Other transactions/adjustments

IntheBankStatement:
-MZBhd (Dividend)creditofRM50 on Feb25.
Interest on deposit credit of RM30onFeb26.
ServicechargesdebitofRM10onFeb28.
ChequeBookpurchaseddebitofRM5onFeb28.

We needtoaddtheRM50dividendcreditandRM30interestcredittoourbalance.
WealsoneedtosubtracttheRM10servicechargesdebitandRM5chequebookpurchasedde
bitfromourbalance.

Step 5: Calculate the updated balance

Starting with the opening balance of RM2,840, we add all the deposits and subtract
all the cheque payments. Then we add any other credits and subtract any other
debits.

Opening Balance: RM2,840

+ Deposits: RM400 + RM550 + RM600 = RM1,550
- Cheque Payments: RM370 + RM200 + RM150 = -RM

Answer & Explanation:

a) To update the cash book (bank column), we need to compare the
transactions in the cash book with those in the bank statement and
make adjustments accordingly.

Starting with the balance brought down from June 1st, we add any
deposits made into the bank account. In this case, there are no
deposits mentioned.

Next, we deduct any checks issued or payments made from the bank
account. We refer to the checks mentioned in both the cash book and
bank statement and record them accordingly.

Finally, we compare the ending balance in both records. If they are not
equal, we adjust for any additional transactions that may have been
recorded by either party but not yet reflected in one of the records.

Based on this information, here is an updated version of S.A Cheah's

cash book (bank column):

Date Particulars Chq No. RM Bank Balance

-----------------------------------------------------------------
Jun 1 Balance b/d 5,000
Jun 4 Rent 24778 -330 4,670
Jun 10 Stationery 24779 -300 4,370
Jun 11 Osman & Amar 24780 -3,200 1,170
Jun12 Sales - +1,800 +2,970
Jun20 Johan Trading - +450 +3,420

b) To prepare a bank reconciliation statement as at June30th:

Bank Statement Balance: RM1,970

Adjusted Cash Book Balance:

Balance c/d: RM1 ,650

Items to be added:
- Deposits not yet credited by bank: None mentioned.
- Errors or omissions on Bank Statement: None mentioned.
- Interest earned but not recorded in Cash Book: None mentioned.
- Bank charges deducted by Bank but not recorded in Cash Book: None
mentioned.

Items to be deducted:
- Outstanding checks: None mentioned.
- Deposits recorded in Cash Book but not yet credited by Bank: None
mentioned.
- Errors or omissions on Cash Book: None mentioned.

Adjusted Bank Statement Balance = Adjusted Cash Book Balance

RM1,970 = RM1,650

c) Three reasons why the balance in the cash book and bank
statement may be unequal are:
1. Timing differences: Transactions may have been recorded in one
record but not yet reflected in the other due to processing delays or
timing discrepancies.
2. Errors or omissions: Mistakes could have been made while recording
transactions in either the cash book or bank
a) The necessary adjustments in the cash book of Ghina are as follows:

1. Cheques issued amounting to RM9,300 were still outstanding and did not go
through the bank until July 2019.
- Deduct RM9,300 from the cash book balance.

2. A customer received a cash discount of 5% on his account of RM500 but paid the
company by cheque on 15 June 2019. The bookkeeper entered the gross amount in
the cash book.
- Deduct RM25 (5% of RM500) from the cash book balance.

3. A deposit of RM1,000 paid into the bank on 29 June 2019 had not yet appeared on
the bank statement.
- Add RM1,000 to the cash book balance.

4. Bank charges of RM150 were omitted from the cash book.

- Deduct RM150 from the cash book balance.

5. The electricity bill payment by direct debit for June was not recorded in the cash
book.
- Deduct RM100 from the cash book balance.

6. A cheque for RM90 had been lodged on 20 June but was returned as out-of-date
and a new cheque has been requested.
- Deduct RM90 from the cash book balance.

7. Two customers paid amounts directly into the bank account by standing order on
28 June, but no entries were made in
the cashbook.
- Add both amounts (RM950 +RM1,300 =RM2,250) tothe Cash Book Balance

8.RM760 paid intothebankhadbeenenteredtwiceintheCashBook

–DeductRM760fromtheCashBookBalance

9.AstandingordertoacharityforRM135hadnotbeenenteredintheCashBook
–DeductRM135fromtheCashBookBalance

10.On15JunethemanagerhadgiventhebookkeeperachequeforRM500tolodgeintohisper
sonalaccount.Bymistakethebookkeeperlodgedittothebusinessaccountandrecordediti
ntheCashBook
–DeductRM500fromtheCashBookBalance
The corrected balance in the cash book at 30 June 2019 is RM4,850 (RM5,900 -
RM9,300 - RM25 + RM1,000 - RM150 - RM100 - RM90 +RM2,250-RM760-RM135-
RM500).

b) The bank reconciliation at that date showing the balance per the bank statement
is as

Q6.

b). Bank Reconciliation statement as at 30 Jun 2019 RM RM Balance as

per adjusted cash book 988.70 +) Unpresented cheque Stationaries
160.00 Rental 1,940.30 Purchases 153.00 2253.30 -) Uncredited
cheque Sales 75.60 Sales 84.30 Sales 583.20 (743.10) Balance as per
Bank Statement 2498.9

To prepare a bank reconciliation statement, we need to compare the

balance as per the adjusted cash book with the balance as per the
bank statement.

In this case, the balance as per the adjusted cash book is RM988.70.

Next, we need to add any unpresented cheques that have been

recorded in the cash book but have not yet been presented to the bank
for payment. In this case, there are three unpresented cheques:
stationaries (RM160), rental (RM1,940.30), and purchases (RM153). So
we add these amounts to the adjusted cash book balance.

After adding these amounts, we get a total of RM2,253.30.

Next, we need to deduct any uncredited cheques that have been

received by the bank but have not yet been recorded in our cash book.
In this case, there are three uncredited cheques: sales (RM75.60),
sales (RM84.30), and sales (RM583.20). So we deduct these amounts
from our total.

After deducting these amounts from our total, we get a final balance of
RM2,498.90 as per the bank statement.
Therefore, based on this information and calculations provided in your
answer sheet or question prompt, the correct answer for preparing a
bank reconciliation statement as at 31 May 2019 is:

Balance as per Bank Statement: RM2,498.90