Lo4 reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts (kagan, 2020)

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 numb[.]

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

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

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

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

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

Recommandé pour toi

Bank reconciliation statement of FBI on March 31, 2014.

Balanc

e

$202,500 $202,500

Suite du document ci-dessous

Exercise 17 - practice 4

Answer for case 26 - Case 26 Star River Electronics

Exercise 17 - practice 10

HW2 answers - Homework Corporate Finance

1

7

1

3

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 Account title and explanation Debit Credit

1 Account receivable

Revenue

$530

$530

2 Sale return

Account receivable

$60

$60

3 Cash received

Account receivable

$600

$600

“T” Account:

Dr Red & Co Account Cr.

Particular Amount Particular Amount

Balance brought

down

Journal entry

No Account title and explanation Debit Credit

1 Cash received

Account receivable

$350

$350

T account

Dr Green Pte Ltd Account Cr.

Particular Amount Particular Amount

Balance brought

down

$186

Journal entry

No Account title and explanation Debit Credit

Account receivable

$635

$635

T account

Dr Yellow Enterprise Ltd Cr.

Balance brought

down

Blue Sky& Co:

Journal entry:

No Account title and explanation Debit Credit

1 Account receivable

Revenue

$400

$400

2 Cash account

Account receivable

$1400

$1400

Account receivable

$40

$40

T account:

Particular Amount Particular Amount

Balance brought

down

$312

Other account Receivables:

Journal entry:

No Account title and explanation Debit Credit

1 Account receivable

Sales account

$9,600

$9,600

2 Sale return

Account receivable

$540

$540

3 Bad debts expense

Account receivable

$120

$120

4 Cash account

Account receivable

$14,532

$14,532

5 Cash discount

Account receivable

$640

$640

T account:

Particular Amount Particular Amount

$15,385

Control account:

Particular Amount Particular Amount

Red & Co $1,070

Yellow

enterprise

$0 Blue Sky & Co $312

The other

account

$15,385

$15,385

Pink marketing:

Journal entry

No Account title and explanation Debit Credit

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

Particular Amount Particular Amount

$1,400

Grey Hardware:

Journal entry

No Account title and explanation Debit Credit

1 Account payable

Cash payment

$231

$231

T account

Particular Amount Particular Amount

down

$431

$200

White Stationery Pte Ltd:

Journal entry

No Account title and explanation Debit Credit

1 Purchase account

Account payable

$105

$105

2 Account payable

Cash Payment

$100

$100

3 Account payable

Cash discount

$21

.$21

T account:

Particular Amount Particular Amount

down

$210

Journal entry:

No Account title and explanation Debit Credit

1 Account payable

Cash

$312

$312

T account:

Particular Amount Particular Amount

forward

$312

Other account payables:

Journal entry:

No Account title and explanation Debit Credit

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

T account:

Particular Amount Particular Amount

Cash account $2,500 forwardBalance brought $12,470

$13,885

Control account:

payables control account

Cr.

Particular Amount Particular Amount

Others account payable

$13,885

$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

KAGAN, J., 2020 Investopedia [Online]

Available at: https://www.investopedia.com/terms/b/bankreconciliation.asp [Accessed 03 07 2021]