Question 9 The following is a summary from the cash book (bank column) EVENT Services for...

 

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Question 9 The following is a summary from the cash book (bank column) EVENT Services for May 2020. RM May 2020 May 2020 1 Balance b/d 2,060|| Receipts 22,660 31 24.720 RM Payments 23,280 Balance c/d 1,440 24.720 Upon investigation, the following discoveries were made: 1. Bank interest charged of RM72 and bank commission charged of RM84 have been entered in the bank statement but not included in the cash book. 2. Amounts received from customers, Raziah, in the last few days of May 2020 totaling RM2,000 recorded in the cash book but has not been included in the bank statement. 3. Two cheques paid to suppliers, MK Home and MK Curtains, for RM500 and RM700 respectively were not presented for payment to the bank until July 2020. 4. A cheque to Alifah of RM220 has been entered in error as receipt in cash book. 5. A cheque of RM900 has been returned by the bank marked 'refer to drawer', and no record was found in the cash book. 6. Credit transfer of RM380 form IT Services was entered in the bank statement but not in the cash book. 7. The bank has paid out RM 450 to Tenaga Nasional Berhad for the business as per its standing order. The amount is yet to be recorded in the cash book. Required: a) Show journal entries adjustments that need to be made in the cash book for the month on May 2020. b) Update the Cash Book (Bank column). c) Prepare Bank Reconciliation as at 31st May 2020. (15 marks) Question 9 The following is a summary from the cash book (bank column) EVENT Services for May 2020. RM May 2020 May 2020 1 Balance b/d 2,060|| Receipts 22,660 31 24.720 RM Payments 23,280 Balance c/d 1,440 24.720 Upon investigation, the following discoveries were made: 1. Bank interest charged of RM72 and bank commission charged of RM84 have been entered in the bank statement but not included in the cash book. 2. Amounts received from customers, Raziah, in the last few days of May 2020 totaling RM2,000 recorded in the cash book but has not been included in the bank statement. 3. Two cheques paid to suppliers, MK Home and MK Curtains, for RM500 and RM700 respectively were not presented for payment to the bank until July 2020. 4. A cheque to Alifah of RM220 has been entered in error as receipt in cash book. 5. A cheque of RM900 has been returned by the bank marked 'refer to drawer', and no record was found in the cash book. 6. Credit transfer of RM380 form IT Services was entered in the bank statement but not in the cash book. 7. The bank has paid out RM 450 to Tenaga Nasional Berhad for the business as per its standing order. The amount is yet to be recorded in the cash book. Required: a) Show journal entries adjustments that need to be made in the cash book for the month on May 2020. b) Update the Cash Book (Bank column). c) Prepare Bank Reconciliation as at 31st May 2020. (15 marks)

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a Journal Entry adjustments that need to be made in cash book for the month M... View the full answer