Perform bank reconciliations to ensure company and bank records are correct

1 Table of Contents Introduction LO3 Perform bank reconciliations to ensure company and bank records are correct Bank reconciliations 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) Task 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 Introduction As an accounting assistant of Hoa Phat Group, I will 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 Bank balance as per cash book $32,500 Cheques deposited(not credited) $8,900 Cheques issued $12,500 Dividend $5,000 Bank charge $400 Balance as per pass book $40,700 Balanc $50,000 $50,000 e Situation B No 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 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 Bank balance as per pass book $27,350 Cheques issued $19,000 Cheques deposited into bank $8,500 Paid insurance premium $5,000 Wrongly debited to the firm $2,000 Balance as per cash book $23,850 Balanc $42,850 $42,850 e Situation D No 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 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 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 Situation G No 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 LO4 Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts[ CITATION JUL20 \l 1033 ] Task 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 Supplier Red & Co: Journal Entry No 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 Account title and explanation Cash received Debit Credit $350 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 Yellow enterprise Ltd: Journal entry No 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 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 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 Customer: Pink marketing: Journal entry No Account title and explanation Purchase account Account payable Purchase return Cash Account payable Cash payment 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 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 Account title and explanation Purchase account Account payable Account payable Cash Payment Account payable Cash discount 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 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 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 20 % 14% 0% 16% INTERNET SOURCES PUBLICATIONS STUDENT PAPERS SIMILARITY INDEX PRIMARY SOURCES Su tted to TMC Education Group Student Paper vd ments.net Internet Source ww nvestopedia.com Internet Source ww ng.hotelschool.lv Internet Source Su tted to The London College UCK Student Paper Su tted to Ballyfermot College Student Paper Su tted to Brighton School of Business Student Paper pt bd.com Internet Source 5% 4% 3% 2% 2% 1% 1% 1% 19 Submitted to College of Banking and Financial Studies Student Paper 20 Exclude quotes Off Exclude bibliography Exclude matches < words Off ... 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. .. 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 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