Question 2 Kay Karimah's Cash Book at 30th November 2015 showed an overdrawn position of RM3,630 although her bank statement showed only RM2,118 overdrawn. Detailed examination of the two records revealed the following: A. The debit side of the cash book had been undercasted by RM300. A cheque for RM1,560 in favour of Zaini Suppliers Bhd. had been omitted by the bank from its statement, the cheque having been debited to another customer's account. 3. A cheque for RM182 drawn in payment of the telephone account had been entered in the cash book as RM128 but was shown correctly on the bank statement. A cheque for RM210 from Ahmad Hakimi having been paid into the bank was dishonoured and shown as such on the bank statement although no entry relating to the dishonour had been made in the cash book. 1. 2. 4. 5. The bank had debited a cheque for RM126 to Kay's account in error; it should have been debited by them to Ray Rahimah's account. 6. A dividend of RM90 on Kay's holding of Ordinary Shares has been paid direct to her bank account and no entry made in the cash book. 7. 8. 9. Cheques totaling RM1,260 drawn on 29th November had not been presented for payment a) A lodgement of RM1,080 on 30th November had not been credited by the bank. Bank charges amounting to RM228 had been debited by the bank but not entered in the cash book. Required: Make necessary entries in the cash book.
Question 2 Kay Karimah's Cash Book at 30th November 2015 showed an overdrawn position of RM3,630 although her bank statement showed only RM2,118 overdrawn. Detailed examination of the two records revealed the following: A. The debit side of the cash book had been undercasted by RM300. A cheque for RM1,560 in favour of Zaini Suppliers Bhd. had been omitted by the bank from its statement, the cheque having been debited to another customer's account. 3. A cheque for RM182 drawn in payment of the telephone account had been entered in the cash book as RM128 but was shown correctly on the bank statement. A cheque for RM210 from Ahmad Hakimi having been paid into the bank was dishonoured and shown as such on the bank statement although no entry relating to the dishonour had been made in the cash book. 1. 2. 4. 5. The bank had debited a cheque for RM126 to Kay's account in error; it should have been debited by them to Ray Rahimah's account. 6. A dividend of RM90 on Kay's holding of Ordinary Shares has been paid direct to her bank account and no entry made in the cash book. 7. 8. 9. Cheques totaling RM1,260 drawn on 29th November had not been presented for payment a) A lodgement of RM1,080 on 30th November had not been credited by the bank. Bank charges amounting to RM228 had been debited by the bank but not entered in the cash book. Required: Make necessary entries in the cash book.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 2
Kay Karimah's Cash Book at 30th November 2015 showed an overdrawn position
of RM3,630 although her bank statement showed only RM2,118 overdrawn.
Detailed examination of the two records revealed the following:
A.
1.
2.
3.
4.
5.
6.
7.
9.
The debit side of the cash book had been undercasted by RM300.
A cheque for RM1,560 in favour of Zaini Suppliers Bhd. had been omitted
by the bank from its statement, the cheque having been debited to another
customer's account.
8.
A lodgement of RM1,080 on 30th November had not been credited by the
bank.
Bank charges amounting to RM228 had been debited by the bank but not
entered in the cash book.
A cheque for RM182 drawn in payment of the telephone account had been
entered in the cash book as RM128 but was shown correctly on the bank
statement.
A cheque for RM210 from Ahmad Hakimi having been paid into the bank
was dishonoured and shown as such on the bank statement although no
entry relating to the dishonour had been made in the cash book.
The bank had debited a cheque for RM126 to Kay's account in error; it
should have been debited by them to Ray Rahimah's account.
A dividend of RM90 on Kay's holding of Ordinary Shares has been paid
direct to her bank account and no entry made in the cash book.
Cheques totaling RM1,260 drawn on 29th November had not been
presented for payment
a)
Required:
Make necessary entries in the cash book.
Transcribed Image Text:B.
C.
b)
State whether the expenses or revenue is current asset (CA) or current liability
(CL).
a)
b)
c)
e)
Prepare a statement reconciling Kay Karimah's corrected cash book with
her bank statement at 30th November 2015.
No.
a)
b)
c)
d)
e)
A loss on sale of goods
Interest collected in advance
Calculate the missing values below:
Prepaid rent expense
Expired cost of advertising
Rent revenue received in advance
Assets Liability Capital
(RM) (RM) (RM)
672,050
205,500
52,000
90,000
131,120
52,000
?
18,000 42,688
15,000
50,000
8,000
89,000
18,000
?
Drawings Revenue Expenses
(RM) (RM)
(RM)
?
100
5,000
3,000
8,000
?
55,000
8,000
16,000
11,000
?
16,000
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