Harley, owner of a trading business, extracted some items from the draft balance sheet as at 31 March 2021:<\/p>\n
An investigation of the accounting records revealed the following:<\/p>\n
The cash book included a cheque for $308 which was received from a customer in March 2021. The cheque was dated 2 April 2021 and was still held by the cashier on 31 March 2021.<\/p>\n
A cheque for $3,800 had been deposited and properly recorded on 28 March 2021. On 29 March 2021, this cheque was dishonoured and returned by the bank. On 30 March 2021, Harley learnt that the drawer of the cheque had been declared bankrupt. Harley has not made any entries to reflect the unrecoverable debt.<\/p>\n
Harley deposited $200,000 in the company’s bank account as his additional capital in January 2021. No entries have been made.<\/p>\n
The balance in the cash book at 31 December 2020 amounting to $39,000 was incorrectly brought down as $30,000.<\/p>\n
Cheques for $2,530 sent to a supplier in January 2021 had not been paid by the bank.<\/p>\n
A cheque for $180 deposited on 30 March 2021 had been omitted from the 31 March 2021 bank statement.<\/p>\n
A sum of $2,620 had been deposited in the bank on 31 March 2021 but has not yet been credited by the bank on the same date.<\/p>\n
A balance of $213 owed by Amy, a customer, was written off as irrecoverable in March 2021 and debited to the bad debts account, but no entry has been made in the trade receivables account.<\/p>\n
A month’s total of $8,896 in the sales day book had been posted to the trade receivables account as $8,869, although the amount was posted correctly to the sales account.<\/p>\n
One supplier had been paid $562, and this was completely omitted from the trade payables account.<\/p>\n
A cheque for $620, being payment for stationery, was recorded in the cash book but has not been posted to the nominal account.<\/p>\n
Goods costing $370 had been taken by Harley for her personal use. No entries have been made to record this.<\/p>\n
The purchases returns book had been undercasted by $312.<\/p>\n
A credit purchase totalling $1,680 had been omitted in the purchase day book.<\/p>\n
You are required to prepare:<\/p>\n
an updated cash book (bank account) showing the necessary adjustments, and a bank reconciliation statement as at 31 March 2021, (8 marks)<\/p>\n
the suspense account to clear the difference; (6 marks)<\/p>\n
a statement showing the adjusted net profit for the year ended 31 March 2021. (6 marks)<\/p>\n","protected":false},"excerpt":{"rendered":"
Harley, owner of a trading business, extracted some items from the draft balance sheet as at 31 March 2021: An investigation of the accounting records revealed the following: The cash book included a cheque for $308 which was received from a customer in March 2021. The cheque was dated 2 April 2021 and was still […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-79279","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/79279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=79279"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/79279\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=79279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=79279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=79279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}