Question 2 Hammonds Ltd Hammonds Ltd prepares monthly supplier statement reconciliations as part of its control...
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Question 2 Hammonds Ltd Hammonds Ltd prepares monthly supplier statement reconciliations as part of its control processes. Hammonds Ltd has received the following statement for the month of January from a supplier, Dewinds Ltd: Month: Dewinds Ltd January 20X3 Customer: Hammonds Ltd Customer no: 787942 Opening balance at 1 January 20X3 8,600 04/01/20X3 Payment received - Thank you -8,600 05/01/20X3 Sales invoice 91568 7,420 15/01/20X3 Sales invoice 91734 7,630 20/01/20X3 Payment received - Thank you -7,240 20/01/20X3 Sales invoice 91968 7,350 28/01/20X3 Sales invoice 92172 6,970 31/01/20X3 Credit note - damaged goods -600 Closing balance at 31 January 20X3 21,530 We only invoice after we have confirmation of delivery. Our payment terms are 15 days from invoice date. Payments should be made to account number: 40-41-87 12479864 (Dewinds Ltd). Please quote your customer number in all correspondence. We thank you for your custom. Sail the winds with Dewinds! Hammonds Ltd's payables ledger for January shows the following: 0945 Dewinds Ltd 01/01/20X3 Balance brought forward 8,600 CR 01/01/203 031 Bank GBP -8,600 DR 08/01/203 0214 Raw materials 7,420 CR 19/01/203 031 Bank GBP -7,420 DR 22/01/20X3 0214 Raw materials 7,630 CR 22/01/20X3 0214 Raw materials 7,350 CR 29/01/20X3 031 Bank GBP -7,630 DR 31/01/20X3 Balance carried forward 7,350 CR Requirements (a) Prepare a supplier statement reconciliation for the month of January 20X3 assuming you work in the accounting department of Hammonds Ltd. SUPPLIER STATEMENT RECONCILIATION Supplier: Dewinds Ltd Date: 31/01/2023 Balance per supplier statement Payments in transit Supplier errors Balance per (corrected) payables ledger Balance per (unadjusted) payables ledger Corrections necessary: Balance per (corrected) payables ledger Difference (must be zero!) E (b) List the audit procedures you would perform on the supplier statement reconciliation if you were the auditor of Hammonds Ltd. Question 2 Hammonds Ltd Hammonds Ltd prepares monthly supplier statement reconciliations as part of its control processes. Hammonds Ltd has received the following statement for the month of January from a supplier, Dewinds Ltd: Month: Dewinds Ltd January 20X3 Customer: Hammonds Ltd Customer no: 787942 Opening balance at 1 January 20X3 8,600 04/01/20X3 Payment received - Thank you -8,600 05/01/20X3 Sales invoice 91568 7,420 15/01/20X3 Sales invoice 91734 7,630 20/01/20X3 Payment received - Thank you -7,240 20/01/20X3 Sales invoice 91968 7,350 28/01/20X3 Sales invoice 92172 6,970 31/01/20X3 Credit note - damaged goods -600 Closing balance at 31 January 20X3 21,530 We only invoice after we have confirmation of delivery. Our payment terms are 15 days from invoice date. Payments should be made to account number: 40-41-87 12479864 (Dewinds Ltd). Please quote your customer number in all correspondence. We thank you for your custom. Sail the winds with Dewinds! Hammonds Ltd's payables ledger for January shows the following: 0945 Dewinds Ltd 01/01/20X3 Balance brought forward 8,600 CR 01/01/203 031 Bank GBP -8,600 DR 08/01/203 0214 Raw materials 7,420 CR 19/01/203 031 Bank GBP -7,420 DR 22/01/20X3 0214 Raw materials 7,630 CR 22/01/20X3 0214 Raw materials 7,350 CR 29/01/20X3 031 Bank GBP -7,630 DR 31/01/20X3 Balance carried forward 7,350 CR Requirements (a) Prepare a supplier statement reconciliation for the month of January 20X3 assuming you work in the accounting department of Hammonds Ltd. SUPPLIER STATEMENT RECONCILIATION Supplier: Dewinds Ltd Date: 31/01/2023 Balance per supplier statement Payments in transit Supplier errors Balance per (corrected) payables ledger Balance per (unadjusted) payables ledger Corrections necessary: Balance per (corrected) payables ledger Difference (must be zero!) E (b) List the audit procedures you would perform on the supplier statement reconciliation if you were the auditor of Hammonds Ltd.
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Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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