Perform bank reconciliations to ensure company and bank records are correct

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

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

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

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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

Balanc

e

$50,000 $50,000

Situation B

Bank reconciliation statement of HOA PHAT Group on June 30, 2006

4 Discounted bill $3,500

Balanc

e

$35,750 $35,750

Situation C

Bank reconciliation statement of HOA PHAT Group on July 31, 2006.

Balanc

e

$42,850 $42,850

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Situation D

Bank reconciliation statement of FBI on March 31, 2017.

Balanc

e

$64,000 $64,000

Situation E

Bank reconciliation statement of FBI on August 31, 2017.

Balanc

e

$74,000 $74,000

Situation F

Bank reconciliation statement of FBI on March 31, 2014.

Balanc

e

$10,160 $10,160

Situation G

Bank reconciliation statement of FBI on March 31, 2014.

Balanc

e

$202,500 $202,500

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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

1 Account receivable

Revenue

$530

$530

2 Sale return

Account receivable

$60

$60

3 Cash received

Account receivable

$600

$600

“T” Account:

$1,070

Green Pte Ltd:

Journal entry

Account receivable $350

T account

$186

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Yellow enterprise Ltd:

Journal entry

Account receivable

$635

$635

T account

Blue Sky& Co:

Journal entry:

1 Account receivable

Revenue

$400

$400

Account receivable

$1400

$1400

Account receivable

$40

$40

T account:

Balance brought

down

$312

Other account Receivables:

Journal entry:

1 Account receivable

Sales account

$9,600

$9,600

2 Sale return

Account receivable

$540

$540

3 Bad debts expense

Account receivable

$120

$120

Account receivable

$14,532

$14,532

5 Cash discount

Account receivable

$640

$640

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T account:

$15,385

Control account:

$15,385

$16,953

2 Customer:

Pink marketing:

Journal entry

1 Purchase account

Account payable

$1,200

$1,200

2 Purchase return

Cash

$300

$300

3 Account payable

Cash payment

$1,500

$1,500

T account

$1,400

Grey Hardware:

Journal entry

1 Account payable

Cash payment

$231

$231

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T account

down

$431

$200

White Stationery Pte Ltd:

Journal entry

1 Purchase account

Account payable

$105

$105

2 Account payable

Cash Payment

$100

$100

3 Account payable

Cash discount

$21

.$21

T account:

down

$210

$194

Black equipment & Co

Journal entry:

1 Account payable

Cash

$312

$312

T account:

Other account payables:

Journal entry:

1 Purchase account

Account payable

$4,200

$4,200

2 Account payable

Purchase returned

$200

$200

3 Account payable

Cash payment

$2,500

$2,500

4 Account payable

Cash discount

$85

$85

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T account:

$13,885

Control account:

Others account

$15,679

$15,679

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

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KAGAN, J., 2020 Investopedia [Online]

Available at: https://www.investopedia.com/terms/b/bankreconciliation.asp

[Accessed 03 07 2021]

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Submitted to College of Banking and Financial Studies

Student Paper

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