Doan Gia Bao Finance Accounting PDF

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Table of Contents Introduction............................................................................................................................................... 2LO3 Perform bank reconciliations to ensure company and bank records are correct................................Bank reconcili...

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1 Table of Contents Introduction............................................................................................................................................... 2 LO3 Perform bank reconciliations to ensure company and bank records are correct................................3 Bank reconciliations.............................................................................................................................. 3 Task 4: Apply the bank reconciliation process to prepare a number of bank reconciliations.................3 LO4 Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts (KAGAN, 2020)......................................................................................................................... 7 Task 5 You are required to balance all the accounts and check that the total of the balances in the subsidiary ledgers agrees with the control accounts balances at 31 January 2020.................................7 Conclusion............................................................................................................................................... 16 References............................................................................................................................................... 17

2 Introduction As an accounting assistant of Hoa Phat Group, I will do some of the work in this report. I will first help the organization resolve seven situations. Next I will add up the Accounts receivable and Accounts payable control ledger for two objects, customers and suppliers.

3 LO3 Perform bank reconciliations to ensure company and bank records are correct Bank reconciliations Bank reconciliation statements ensure payments have been processed and cash receipts deposited in the bank. Reconciliation reports help identify discrepancies between bank balances and book balances, in order to handle the necessary adjustments or corrections. An accountant typically processes reconciliation reports once a month. Accountants adjust the closing balance of the bank statement to reflect unpaid checks or withdrawals. These are transactions in which payment is being made but cash has not yet been accepted by the recipient. An example is a check mailed on October 30. When preparing a bank reconciliation statement on October 31, a check mailed the previous day is unlikely to have been cashed, so the accountant will deduct the amount from the bank balance. There may also be payments received that have not been processed by the bank, requiring active adjustment. The balance of the cash account in an entity's financial records may also need to be adjusted. For example, a bank may charge a fee for opening an account. Banks typically withdraw and process fees automatically from bank accounts. Therefore, when preparing the reconciliation statement, the bank must account for any fees taken from the account by making a book entry. Another item to adjust is interest earned. Interest will be automatically deposited into your bank account after a certain period of time. As a result, the accountant may need to prepare an entry that increases the amount currently in the financial records. Finally, adjustments are made to the books, the balance should be equal to the closing balance of the bank account. If the figures are equal, a successful bank reconciliation statement has been prepared. Task 4: Apply the bank reconciliation process to prepare a number of bank reconciliations. Situation A Bank reconciliation statement HOA PHAT Group on December 31, 2006 No. Particular Plus Minus 1 Bank balance as per cash book $32,500 2 Cheques deposited(not credited) $8,900 3 Cheques issued $12,500 4 Dividend $5,000 5 Bank charge $400 6 Balance as per pass book $40,700 Balanc $50,000 $50,000 e Situation B No. 1 2 3

Bank reconciliation statement of HOA PHAT Group on June 30, 2006 Particular Plus Minus Bank balance as per cash book $35,750 Debit charges for credit card fee $250 Cheques deposited $7,550

4 4 6 Balanc e

Discounted bill Balance as per pass book $35,750

$3,500 $24,450 $35,750

Situation C Bank reconciliation statement of HOA PHAT Group on July 31, 2006. No. Particular Plus Minus 1 Bank balance as per pass book $27,350 2 Cheques issued $19,000 3 Cheques deposited into bank $8,500 4 Paid insurance premium $5,000 5 Wrongly debited to the firm $2,000 6 Balance as per cash book $23,850 Balanc $42,850 $42,850 e

5 Situation D No. 1 2 3 4 5 6 Balanc e

Bank reconciliation statement of FBI on March 31, 2017. Particular Plus Minus Bank balance as per cash book $50,000 Cheques issued $6,000 Collected dividend by bank $8,000 Bank charges $400 Cheque deposited $6,000 Balance as per pass book $57,600 $64,000 $64,000

Situation E No. 1 2 3 4 5 Balanc e

Bank reconciliation statement of FBI on August 31, 2017. Particular Plus Minus Bank balance as per cash book $54,000 Bank incidental charges $100 Cheques deposited $5,400 Cheques issued $20,000 Balance as per pass book $68,500 $74,000 $74,000

Situation F No. 1 2 3 4 5 Balanc e

Bank reconciliation statement of FBI on March 31, 2014. Particular Plus Minus Overdraft by cash book $8,000 Cheques paid in $2,000 Cheques issued $800 Bank charges $160 Balance as per pass book $9,360 $10,160 $10,160

6 Situation G No. 1 2 3 4 5 6 Balanc e

Bank reconciliation statement of FBI on March 31, 2014. Particular Plus Minus Overdraft by cash book $118,100 Cheques received and recorded $12,400 Payment received $8,800 Payment received $27,300 Bank charges $175,200 Balance as per pass book $63,200 $202,500 $202,500

7 LO4 Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts[ CITATION JUL20 \l 1033 ] Task 5 You are required to balance all the accounts and check that the total of the balances in the subsidiary ledgers agrees with the control accounts balances at 31 January 2020. 1. Supplier Red & Co: Journal Entry No. 1 2 3

Account title and explanation Account receivable Revenue Sale return Account receivable Cash received Account receivable

Debit

Credit $530 $530 $60 $60 $600 $600

“T” Account: Dr.

Red & Co Account

Particular

Cr.

Amount

Revenue Balance brought down

Particular

Amount

$530 Sale return

$60

$1,200 Cash account

$600

$1,730

$660

$1,070

Green Pte Ltd: Journal entry No. 1

Account title and explanation Cash received

Debit

Credit $350

8 Account receivable

$350

T account Dr.

Green Pte Ltd Account

Particular Balance brought down

Cr.

Amount

Particular

Amount

$536 Cash account

$350

$536

$350

$186

9 Yellow enterprise Ltd: Journal entry No. 1

Account title and explanation Bad debt Account receivable

Debit

Credit $635 $635

T account Dr.

Yellow Enterprise Ltd

Particular

Cr. Particular

Amount

Balance brought down

Amount

$635 Cash account

$635

$635

$635

$0

$0

Blue Sky& Co: Journal entry: No. 1 2 3

Account title and explanation Account receivable Revenue Cash account Account receivable Discount Account receivable

Debit

Credit $400 $400 $1400 $1400 $40 $40

10 T account: Dr.

Blue Sky & Co Particular

Amount

Revenue

Cr. Particular

Amount

$400 Cash account

Balance brought down

$1,400

$1,352 Discount

$40

$1,752

$1,440

$312

Other account Receivables: Journal entry: No. 1 2 3 4 5

Account title and explanation Account receivable Sales account Sale return Account receivable Bad debts expense Account receivable Cash account Account receivable Cash discount Account receivable

Debit

Credit $9,600 $9,600 $540 $540 $120 $120 $14,532 $14,532 $640 $640

11 T account: Others account receivables

Dr. Particular Balance b/d Sales account

Amount

Cr.

Particular

Amount

$21,617 Sales return

$540

$9,600 Bad debts

$120

Cash account

$14,532

Cash discount

$640 $15,832

$31,217 $15,385

Control account: Dr.

Account receivable control Particular

Amount

Red & Co

$1,070

Green Pte Ltd

$186

Yellow enterprise

$0

Blue Sky & Co

$312

The other account

$15,385 $15,385 $16,953

Cr. Particular

Amount

12 2. Customer: Pink marketing: Journal entry No. 1

Account title and explanation Purchase account Account payable Purchase return Cash Account payable Cash payment

2 3

Debit

Credit $1,200 $1,200 $300 $300 $1,500 $1,500

T account Dr.

Pink marketing

Particular

Amount

Cash Payment Cash Payment

Cr. Particular

Amount

$300 Balance brought down

$2,000

$1,500 Purchase account

$1,200

$1,800

$3,200 $1,400

Grey Hardware: Journal entry No. 1

Account title and explanation Account payable Cash payment

Debit

Credit $231 $231

13 T account Dr.

Grey Hardware

Particular

Amount

Cash account

Cr. Particular

Amount

$231 Balance brought down

$431

$231

$431 $200

White Stationery Pte Ltd:

Journal entry No. 1

Account title and explanation Purchase account Account payable Account payable Cash Payment Account payable Cash discount

2 3

Debit

Credit $105 $105 $100 $100 $21 .$21

T account: Dr. Particular

White stationery Pte Ltd Amount

Particular

Cr. Amount

Cash account

$100 Purchases account

$105

Cash account

$21 Balance brought down

$210

$121

$315 $194

14 Black equipment & Co Journal entry: No. 1

Account title and explanation Account payable Cash

Debit

Credit $312 $312

T account: Black Equipment & Co account

Dr. Particular

Amount

Cash account

Cr.

Particular

$312

Amount

Balance brought forward

$312

$312

$312

$0

$0

Other account payables: Journal entry: No. 1 2 3 4

Account title and explanation Purchase account Account payable Account payable Purchase returned Account payable Cash payment Account payable Cash discount

Debit

Credit $4,200 $4,200 $200 $200 $2,500 $2,500 $85 $85

15 T account: Others account payables

Dr. Particular Purchase returned

Amount

Particular

Cr. Amount

$200 Purchases account

Cash account

$2,500

Cash discount

$85

$4,200

Balance brought forward

$12,470

$2,785

$16,670 $13,885

Control account: Account payables control account

Dr. Particular

Amount

Particular

Cr. Amount

White stationery

$194

Black equipment

$0

Pink Marketing

$1,400

Grey Hardware

$200

Others account payable

$13,885 $15,679 $15,679

16 Conclusion I have completed my report. This report helps Hoa Phat Group control the cash flow and manage the company's bank account in terms of cash flow.

17 References KAGAN, J., 2020. Investopedia. [Online] Available at: https://www.investopedia.com/terms/b/bankreconciliation.asp [Accessed 03 07 2021].

18 ORIGINALITY REPORT

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ments.net Internet Source

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nvestopedia.com Internet Source

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ng.hotelschool.lv Internet Source

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tted to The London College UCK Student Paper

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tted to Brighton School of Business Student Paper

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bd.com Internet Source

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19 Submitted to College of Banking and Financial Studies Student Paper

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