a) An entity has to maintain its records property so that the business can run efficiently and that management can look at the accounts to see how the business is performing. Bank reconciliation statements are prepared to determine the differences between the cash book and the bank statement. REQUIRED: Explain four main purposes of preparing a bank reconcilation statement.
a) An entity has to maintain its records property so that the business can run efficiently and that management can look at the accounts to see how the business is performing. Bank reconciliation statements are prepared to determine the differences between the cash book and the bank statement. REQUIRED: Explain four main purposes of preparing a bank reconcilation statement.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 3BE
Related questions
Question
![CRA DENIS- Ward (Pruduit Atation Faileit)
REFERENCES
MAILNGS
REVIEW
VEW
EE
91 E
1Normal 1No Spac Heading t Heading 2
Tele
Paragraph
Styles
a) An entity has to maintain its records property so that the business can run efficiently and that
management can look at the accounts to see how the business is performing. Hank reconciliation
statements ate prepared to determine the differences between the cash book and the bank
statement.
REQUIRED: Explain four main purposes of preparing a bank reconcilation statement.
b) You are working as accounting trainee employed by Masumbuko Ltd. One of your duties is to
prepare bank reconcilaticin, the bank statement sent to you on monthly basas by the local branch
of the CBD bank pic. On 30th lunie 2015 the cash book balance showed an overdraft of
TZ5.60,000,000 whilst the bank statement showed that on the same date Masumbuko Lta has
TZ5.620,000,000 in credit with the bank Checking through both the cash book and the bank
statement you discover the followirig:
A chenue for T2S 126,000.000 payable to Malingumu has been entered twice into the
cash book.
Bank charge TZS.50,000.000 debited to the bank statement do not appear in the cash
book
i.
A dividend for TZs.240,000.000 received by the bank on 20th June 2015 has not entered
in the cash book.
Chequts issued totaling TZ5.62000.000 and entered into cash book have not been
presented to the bank for payment
A direct debt for TZ5.42.000.00 paid correctly by the bank on 2sth June 2015 does not
appear in the cash book
vi.
iv.
V.
Receipts from various customers amounting to TZS 187,000,000 have been entered into
cash book but do not appear on the bank statement.
A cheque for T25.87,000,000 isued to Makusaro shown incorrectly on the bank
statemient as 1zs.78,000,000.
vii.
viii.
A customer cheque has been returned unpaid by hit bank and the amount of
T25.36,000,000/ shows as adjustment on the banktatement. No entry has been made
TOSHIBA
&
7
8
Y
U
P](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F836d7094-5530-442e-949a-261be784f2fa%2Fdfd4909c-d95e-4a62-98bf-aff7c701de3c%2Fmvps3x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CRA DENIS- Ward (Pruduit Atation Faileit)
REFERENCES
MAILNGS
REVIEW
VEW
EE
91 E
1Normal 1No Spac Heading t Heading 2
Tele
Paragraph
Styles
a) An entity has to maintain its records property so that the business can run efficiently and that
management can look at the accounts to see how the business is performing. Hank reconciliation
statements ate prepared to determine the differences between the cash book and the bank
statement.
REQUIRED: Explain four main purposes of preparing a bank reconcilation statement.
b) You are working as accounting trainee employed by Masumbuko Ltd. One of your duties is to
prepare bank reconcilaticin, the bank statement sent to you on monthly basas by the local branch
of the CBD bank pic. On 30th lunie 2015 the cash book balance showed an overdraft of
TZ5.60,000,000 whilst the bank statement showed that on the same date Masumbuko Lta has
TZ5.620,000,000 in credit with the bank Checking through both the cash book and the bank
statement you discover the followirig:
A chenue for T2S 126,000.000 payable to Malingumu has been entered twice into the
cash book.
Bank charge TZS.50,000.000 debited to the bank statement do not appear in the cash
book
i.
A dividend for TZs.240,000.000 received by the bank on 20th June 2015 has not entered
in the cash book.
Chequts issued totaling TZ5.62000.000 and entered into cash book have not been
presented to the bank for payment
A direct debt for TZ5.42.000.00 paid correctly by the bank on 2sth June 2015 does not
appear in the cash book
vi.
iv.
V.
Receipts from various customers amounting to TZS 187,000,000 have been entered into
cash book but do not appear on the bank statement.
A cheque for T25.87,000,000 isued to Makusaro shown incorrectly on the bank
statemient as 1zs.78,000,000.
vii.
viii.
A customer cheque has been returned unpaid by hit bank and the amount of
T25.36,000,000/ shows as adjustment on the banktatement. No entry has been made
TOSHIBA
&
7
8
Y
U
P
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