1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
Jacques is a sole trader. On 31 January 2019, the balance on the bank statement was $1875 debit. This did not agree with Jacques’s cash book balance of $4327 credit. The following transactions were included only on the bank statement. A payment for wages of $850. A transfer of $3500 from Smith, a credit customer. The following transactions were included only in the cash book. A cheque payment to a supplier for $340. A receipt of $560 from a customer. The following errors have also been identified. A direct debit payment for insurance of $180 had been incorrectly recorded on the bank statement as $108. A standing order for electricity of $175 had been incorrectly recorded in the cash book as $275. Bank interest paid of $75 had been recorded as interest received in the cash book. REQUIRED Prepare the updated cash book at 31January 2019. Dates are not required. Prepare the bank reconciliation statement at 31 January 2019. State two reasons why a business would prepare a bank reconciliation statement. Additional information Jacques calculated a draft profit for the year ended 31 January 2019 of $10 340. He has identified the following. An item of inventory had been included at cost, $800. It was found to be damaged. It could be sold for $900 if repairs costing $150 were carried out. On 25 January 2019 Jacques had sent goods to a customer on a sale or return basis. These had been invoiced to the customer at $2800. Jacques marks up his goods at 40%. The customer had not decided whether to keep the goods. On 4 February 2019 Jacques received an invoice for $3600 relating to rental of storage space for three months ending 31 March 2019. REQUIRED Prepare a statement to show the revised profit for the year ended 31 January 2019, after adjusting for items 1, 2 and 3.
9706_w19_qp_21
THEORY
2019
Paper 2, Variant 1
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Questions Discovered
385