Bank reconciliation Answers PDF

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20/05/2020

Bank reconciliation

MYOB AccountRight Practice Set Australian Edition 3, Updated for MYOB v19 Bookmark

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Feedback: Bank reconciliation This is a feedback page. Please review this page carefully. It includes the original questions along with grading of your responses and detailed feedback. After you have reviewed this feedback page, click Continue at the bottom of this page for the next page of your practice set.

It is now the first of February 2020 You meet Juliet who reminds you to back up your work in MYOB regularly. You promise her that you will back up the company file immediately. Juliet then asks you to prepare a bank reconciliation of the cheque account for January and provides you with the following reports:

Bank Statement ~ January The bank statement for January 2020 is shown below:

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Time frames are only a guide. You may take more or less time to complete each page.

Your grading outcome (still in progess) Awarded Points

Total Points

270

272

37

37

Prior to this page On this page After this page Total

0

100

307

409

MYOB Learning Centre • •

MYOB Learning Centre Quick reference guide

Information from previous pages • • • • • • • • • https://www.perdisco.com/elms/qsam/html/qsam.aspx

Welcome page Academic honesty General instructions Navigating your practice set Accounting policies and procedures Creating the company file Setup information Spend money (first transaction) Transactions list (to 31 January) 1/6

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Bank reconciliation

•

Trial balance (at 31 January)

Hobart branch Account No. 34411736 Page No. 1

Juliet Bragg 884 Lamy Avenue Hobart, TAS 7000

Hi-Fi Way

Date

Particulars

Debit

Credit

Balance

1 JAN BALANCE BROUGHT FORWARD

$69,017 CR

1 JAN 4076

$1,520

2 JAN DEPOSIT - Handys Electronics

$67,497 CR $10,840

2 JAN 4075

$78,337 CR

$5,400

5 JAN DEPOSIT - Turbo Tech

$72,937 CR $10,943

$83,880 CR

6 JAN 4080

$6,336

$77,544 CR

8 JAN 4079

$4,200

$73,344 CR

8 JAN 4077

$3,850

$69,494 CR

8 JAN 4078

$1,870

10 JAN DEPOSITS 20 JAN 4082

$67,624 CR $33,494

$101,118 CR

$11,550

$104,968 CR

$7,700

25 JAN DEPOSIT - Cash sales 30 JAN 4083

$93,418 CR

$2,684

31 JAN TRANSACTIONS FEE

$102,284 CR

$9

$102,275 CR

31 JAN INTEREST

$707

Last statement to This statement to 31/12/2019 31/01/2020

Total debits $33,569

Total credits $67,534

$102,982 CR

Final balance $102,982 CR

Proceeds of cheques will not be available until cleared. All entries for the last business day are subject to verification and authorisation. Any items not paid, or withdrawn, will be adjusted by reversal entry on a later statement.

Bank Reconciliation Statement ~ December Below is last month's bank reconciliation statement that was manually prepared by Juliet before the business converted to a computerised accounting system using MYOB. As such, any reconciling items appearing on last month's bank reconciliation statement have not been entered as separate transactions into your MYOB software. You are therefore required to manually check those reconciling items against the bank statement as part of the bank reconciliation process. Hi-Fi Way Bank Reconciliation Statement As at 31 December 2019 Balance as per bank statement:

69,017 CR

Add: deposit in transit from Turbo Tech

10,943

deposit in transit from Handys Electronics

10,840

21,783 90,800 CR

Less: outstanding cheque

No. 4075

5,400

outstanding cheque

No. 4076

1,520

Adjusted bank balance https://www.perdisco.com/elms/qsam/html/qsam.aspx

6,920 83,880 CR 2/6

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Bank reconciliation

Balance as per ledger account

83,880 DR

Once you have prepared the January bank reconciliation for the cheque account, Juliet tells you that she will ask you to answer several questions about account reconciliation in MYOB.

Instructions 1. Remember to back up your company file for Hi-Fi Way. 2. Use MYOB to prepare a bank reconciliation as of 31 January 2020 for Hi-Fi Way in MYOB. To do this you will need to prepare two special entries for the transactions fee and interest earned amounts as follows: •

•

transactions fee entry: you are required to use the FRE tax code and input the ID# for this entry that is automatically generated by MYOB of the form SCDDMMYY ("SC" stands for service charge and DDMMYY is a date). interest earned entry: you are required to use the ITS tax code and input the ID# for this entry that is automatically generated by MYOB of the form IEDDMMYY ("IE" stands for interest earned).

3. Use MYOB to print the reconciliation report for the ledger account called Cheque Account as of 31 January 2020 and transcribe your answers into the reconciliation report provided below. 4. Note that if MYOB presents numbers in brackets, you must enter those numbers as negative numbers below. 5. Answer all of the questions about MYOB that Juliet asks below.

Reconciliation Report ~ January The Reconciliation Report of the cheque account is provided below:

Hi-Fi Way Reconciliation Report ID#

Date

Memo/Payee

Deposit

Withdrawal

Cheque Account: 1-1110 - Cheque Account Date of Bank Statement: 31 January 2020 Reconciled Cheques

https://www.perdisco.com/elms/qsam/html/qsam.aspx

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Total: $

$ 3/6

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Bank reconciliation

Reconciled Deposits $

$

$

$

$

$

$

$

Total: $

$

$

$

$

$

$

$

$

$

$

$

$

$

Total: $

$

$

$

$

$

Total: $

$

Outstanding Cheques

Outstanding Deposits

Reconciliation Balance on 31/01/2020: $ Add:

:

$

Subtotal: $ :

Deduct:

$

Expected Balance on Statement: $

Feedback

Hi-Fi Way Reconciliation Report 31 January 2020

ID#

Date

Memo/Payee

Deposit

Withdrawal

Cheque Account: 1-1110 - Cheque Account Date of Bank Statement: 31 January 2020

Reconciled Cheques

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Bank reconciliation

4077

2/01/2020 Purchase of Equipment

$3,850

4078

2/01/2020 Purchase of Office Supplies

$1,870

4079

4/01/2020 MOON for Purchase #305

$4,200

4080

5/01/2020 BIG for Purchase #302

$6,336

4082

15/01/2020 Prepaid Rent

$7,700

4083

28/01/2020 BIG

$2,684

SC310120

31/01/2020 Transactions fee

$9 Total:

$0

$26,649

Reconciled Deposits CR000004

7/01/2020 Bank Deposit

$33,494

CR000006

21/01/2020 Bank Deposit

$11,550

IE310120

31/01/2020 Interest Earned

$707 Total:

$45,751

$0

Outstanding Cheques 4081

15/01/2020 BIG for Purchase #307

$3,905

4084

31/01/2020 Paycheque

$2,635

4085

31/01/2020 Paycheque

$2,890

4086

31/01/2020 Electricity Bill

$1,540

4087

31/01/2020 Phone Bill

$1,430

4088

31/01/2020 Interest on Bank Loan Total:

$245 $0

$12,645

Outstanding Deposits CR000008

31/01/2020 Bank Deposit

$11,000 Total:

$11,000

$0

Reconciliation Balance on 31/01/2020:

$101,337

Add: Outstanding Cheques:

$12,645

Subtotal:

$113,982

Deduct: Outstanding Deposits:

$11,000

Expected Balance on Statement:

$102,982

Note that the Memo/Payee column is not graded.

Questions on MYOB (Q=504.F.M.BR.P1.Q2)

After you have completed the reconciliation report, Juliet asks you to explain the meaning of one of the terms that can appear on the reconciliation report. From your company's perspective, which of the following shows the correct description of the term outstanding deposits: deposits cleared by the bank but not yet recorded in the company's accounts cheques that are not yet received from customers https://www.perdisco.com/elms/qsam/html/qsam.aspx

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Bank reconciliation

deposits that are deemed to be uncollectible deposits recorded in your company's accounts but not yet cleared by the bank

(Q=504.F.M.BR.P2.Q1)

Juliet then asks you to open the Reconcile Accounts window by following the steps below: 1. Go to the Banking Command Centre and click Reconcile Accounts. 2. In the Account field, select '1-1110' (Cheque Account). 3. In the Bank Statement Date field, enter '31/01/2020'. Select the correct statement about the Reconcile Accounts window that appears after the above steps are performed: It mentions the amounts of deposits received from customers in the Withdrawals column. It displays the Out of Balance amount as the sum of the amount in the New Statement Balance field and the amount in the Calculated Statement Balance field. You can view a particular transaction in detail by clicking the zoom arrow icon next to that transaction. It lists the amounts of cheques issued to the suppliers in the Deposits column. Note: After answering this question, click the Cancel button to close the Reconcile Accounts window without saving.

(Q=504.F.M.BR.P3.Q1)

Juliet also asks you to identify the field that is not available in the Reconcile Accounts window: To open the Reconcile Accounts window, go to the Banking Command Centre and click Reconcile Accounts. Which of the following shows the field that is not in the Reconcile Accounts window: Interest Income Bank Statement Date New Statement Balance Account Note: After answering this question, click the Cancel button to close the Reconcile Accounts window without saving.

Specific agreement I understand that I should regularly back up the company file for Hi-Fi Way and am required to complete the bank reconciliation statement and answer all of the questions on this page of the practice set. I am fully aware that if I choose not to follow the above instructions, I will not be able to successfully complete the rest of my practice set. Continue MYOB AccountRight Practice Set, Australian Edition 3, Updated for MYOB v19 (VMA3t.19) © 2010 - 2017 Perdisco / latin /. v., learn thoroughly www.perdisco.com/au | Terms Of Use | Privacy Policy | Wednesday, May 20, 2020, 16:59

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