a.Prepare the updated cashbook.b.Prepare the bank reconciliation statement as at 31 December 2020. The following are the cash book and bank statement of DRS Enterprise for the month ofDecember 2020:Cash Book (Bank Account only)RM20202020RM460 Dec 4 Cheque no. 40010 Ruby6 Cheque no. 40011 Zain8 Cheque no. 40012 Harris10 Cheque no. 40013 Wong15 Cheque no. 40014 Daud21 Cheque no. 40015 LimDec 1 Balance b/d2,0003 Cash8 Lim2,6001,6001,70068014 Mat1,81676018 Jay and Kay9001,6002,30024 Bidin1,12031 Balance c/d5449,0409,040Jan 1 Balance b/d544Bank StatementDebitDateTransactionChequeNo.CreditBalanceCodeDec 1 Balance b/f460 Credit3CH2,6003,860 Credit6so1,0602,0002,800 Credit840010800 Credit9CQ1,6002,400 Credit11400137601,640 Credit12400111,70060 Debit14CT2,4002,340 Credit4,240 Credit18CT1,900CQso191,8056,045 Credit202,7003,345 Credit3,337 Credit2,137 Credit23CB827400161,2002,3002940015163 Debit31BC681,031 Debit Transaction CodesСВ СhequebookBC Bank ChargeCHCashSOStanding OrderCQ ChequeCTCredit Transfer

Answered: Image /qna-images/answer/febdb3e7-3cea-4582-b7d7-825c28b882de.jpg

Cash Book (Bank Account only) 2020 RM 2020 RM 460 Dec 4 Cheque no. 40010 Ruby 6 Cheque no. 40011 Zain 8 Cheque no. 40012 Harris Dec 1 Balance b/d 2,000 3 Cash 2,600 1,600 1,816 900 1,120 544 1,700 8 Lim 14 Mat 680 10 Cheque no. 40013 Wong 15 Cheque no. 40014 Daud 21 Cheque no. 40015 Lim 760 1,600 18 Jay and Kay 24 Bidin 2,300 31 Balance c/d 9,040 9,040 Jan 1 Balance b/d 544 Bank Statement Cheque No. Dec 1 Balance b/f Date Transaction Debit Credit Balance Code 460 Credit 3 CH 2,600 3,860 Credit 2,800 Credit 6 so 1,060 40010 2,000 800 Credit CQ 9 1,600 2,400 Credit 11 40013 760 1,640 Credit 12 40011 1,700 60 Debit 14 2,400 2,340 Credit 4,240 Credit 18 1,900 19 1,805 6,045 Credit 20 so 2,700 3,345 Credit 3,337 Credit 2,137 Credit 163 Debit 23 св 27 40016 1,200 29 40015 2,300 31 BC 68 1,031 Debit

Cash Book (Bank Account only) 2020 RM 2020 RM 460 Dec 4 Cheque no. 40010 Ruby 6 Cheque no. 40011 Zain 8 Cheque no. 40012 Harris Dec 1 Balance b/d 2,000 3 Cash 2,600 1,600 1,816 900 1,120 544 1,700 8 Lim 14 Mat 680 10 Cheque no. 40013 Wong 15 Cheque no. 40014 Daud 21 Cheque no. 40015 Lim 760 1,600 18 Jay and Kay 24 Bidin 2,300 31 Balance c/d 9,040 9,040 Jan 1 Balance b/d 544 Bank Statement Cheque No. Dec 1 Balance b/f Date Transaction Debit Credit Balance Code 460 Credit 3 CH 2,600 3,860 Credit 2,800 Credit 6 so 1,060 40010 2,000 800 Credit CQ 9 1,600 2,400 Credit 11 40013 760 1,640 Credit 12 40011 1,700 60 Debit 14 2,400 2,340 Credit 4,240 Credit 18 1,900 19 1,805 6,045 Credit 20 so 2,700 3,345 Credit 3,337 Credit 2,137 Credit 163 Debit 23 св 27 40016 1,200 29 40015 2,300 31 BC 68 1,031 Debit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

a.Prepare the updated cashbook.

b.Prepare the bank reconciliation statement as at 31 December 2020.

The following are the cash book and bank statement of DRS Enterprise for the month of
December 2020:
Cash Book (Bank Account only)
RM
2020
2020
RM
460 Dec 4 Cheque no. 40010 Ruby
6 Cheque no. 40011 Zain
8 Cheque no. 40012 Harris
10 Cheque no. 40013 Wong
15 Cheque no. 40014 Daud
21 Cheque no. 40015 Lim
Dec 1 Balance b/d
2,000
3 Cash
8 Lim
2,600
1,600
1,700
680
14 Mat
1,816
760
18 Jay and Kay
900
1,600
2,300
24 Bidin
1,120
31 Balance c/d
544
9,040
9,040
Jan 1 Balance b/d
544
Bank Statement
Debit
Date
Transaction
Cheque
No.
Credit
Balance
Code
Dec 1 Balance b/f
460 Credit
3
CH
2,600
3,860 Credit
6
so
1,060
2,000
2,800 Credit
8
40010
800 Credit
9
CQ
1,600
2,400 Credit
11
40013
760
1,640 Credit
12
40011
1,700
60 Debit
14
CT
2,400
2,340 Credit
4,240 Credit
18
CT
1,900
CQ
so
19
1,805
6,045 Credit
20
2,700
3,345 Credit
3,337 Credit
2,137 Credit
23
CB
8
27
40016
1,200
2,300
29
40015
163 Debit
31
BC
68
1,031 Debit

Transaction Codes
СВ Сhequebook
BC Bank Charge
CH
Cash
SO
Standing Order
CQ Cheque
CT
Credit Transfer

Definition Definition Document prepared to identify any discrepancies between the passbook, which logs bank transactions, and the cash book, where a business tracks its own cash and bank transactions, so that corrective measures may be taken to reconcile the differences.

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