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Mastering Bank Reconciliation and Journal Entries for Accounting

School
Johor Matriculation College**We aren't endorsed by this school
Course
ACCOUNTING AA015
Subject
Accounting
Date
Dec 12, 2024
Pages
7
Uploaded by MasterTitanium15726
1SUGGESTED ANSWER PSPM AA015 – 2020/2021 QUESTION 1 [20 marks](a)(i) Bank Reconciliation StatementSutera EnterpriseBank Reconciliation Statementas at 31stMarch 2020ITEMRMRMCash Balance Per Bank Statement14,685Add : Deposit In Transit3,00017,685Deduct : Outstanding Cheques(790)Adjusted Cash Balance Per bank16,895Cash Balance Per cash book18,350Add : 1,10019,450Deduct : (2,555)Adjusted Cash Balance Per cash book16,895(ii) Journal entries.DateAccountsdrcrMar.31dr. Bankcr. Accounts Receivable – Hana1,1001,100dr. Accounts Payable – Media Corp Bank Charges/Bank Service ChargesAccounts Receivable – Annie Accounts Receivable – Hasancr. Bank45321802,3002,555
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2(b) (i) JournalsDateAccountsdrcr1.dr. Cash or BankAccounts Receivablecr. Sales220,000140,000360,0002.dr. Allowance for Doubtful Accountscr. Accounts Receivable – Shukri7507503.dr. Accounts Receivable – Janacr. Allowance for Doubtful Accounts1,2001,200dr. Cashcr. Accounts Receivable – Jana1,2001,200(ii)Allowance for Doubtful Accounts account.Allowance for Doubtful AccountsRMRMAccounts Receivable750Balanceb/f4,200Accounts Receivable1,200Balance c/f 6,985 Bad Debts Expense2,335 7,735 7,735 (iii)Adjustment entry.DateAccountsdrcrAug. 31dr. Bad Debts Expensecr. Allowance for Doubtful Accounts2,3352,335
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3QUESTION 2 [20 marks](a)Journal entryDateAccountsdrcrJune 7dr. Inventorycr. Accounts Payable – Barokah Enterprise10,00010,00010dr. Accounts Payable – Barokah Enterprisecr. Inventory20020020dr. Cost of Goods Soldcr. Inventory1,9001,900dr. Cashcr. Sales2,5002,500(b)(i) Calculate the ending inventory units and the on 30 September 2020 using First-in, First- out method on Periodical Inventory System for Manja Enterprise.Beginning Inventory(+) Purchases (-) Sales 100675(570)Ending Inventory unit205(ii) Calculate the value of the ending inventory (FIFO method) for September 2020.RMSept 11thpurchase 306(+) Sept 23rdpurchase 1,750Ending Inventory2,056
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4(ii) Calculate the cost of goods sold for September 2020(RM)Beginning Inventory)1,100Sept 3rdpurchases 2,160Sept 10thpurchase 1,696Sept 11thpurchase 1,428Sept 23rdpurchase 1,750Cost available for sale8,134(-) Cost of ending inventory(2,056)Cost of goods sold6,078(iv) Calculate the gross profit for September 2020.RMSales 10,545(-) Cost of goods sold(6,078)Gross profit4,467
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5QUESTION 3 [20 marks]a.(i)To record depreciation expense of the machine for 2019 (monthly basis, straight-linemethod)DateAccountsDebit(RM)Credit(RM)2019Dec 31dr. Depreciation Expense – Machinecr. Accumulated Depreciation – Machine1,150*1,150Calculation*RMTotal depreciation expense1,150*(ii) To record depreciation expense of the equipment for 2019 (yearly basis, reducing-balance method)DateAccountsDebit(RM)Credit(RM)2019Dec 31dr. Depreciation Expense – Equipmentcr. Accumulated Depreciation – Equipment990*990Calculation (EquipmentC: CostRM10,000)YearDepreciation ExpenseAccDepBV20171,0001,0009,00020189001,9008,10020198102,7107,290Calculation (EquipmentD:CostRM2,000)YearDepreciation ExpenseAccDepBV20182002001,80020191803801,620*Total depreciation expense 2019 = RM810 + RM180 = RM990*
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6b. Equipment DE & AD accountDepreciation Expense – Equipment2019RMDecStatement of Profit or99031Loss990Accumulated Depreciation – Equipment2019RMJan 1Balance b/f (1,900 + 200)2,100DecDepreciation Expense99031– Equipment3,0902019DecAccumulated Depreciation31– EquipmentRM9909902019Dec31Balance c/fRM3,0903,090
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7QUESTION 4 [25 marks]a.(i) to record the receipt of mortgageDateParticularsDt (RM)Cr (RM)2019April 1BankMortgage Payable175,000175,000(ii)Interest expense and reduction of principal for the first monthMonthMonthly installment (A)Interest expense175,000 x 7.5%x 1/12 (B)Reduction ofoutstandingbalance (A – B)OutstandingbalancePrincipal175,00011,622.281,093.75528.53174,471.47(iii)To record the first monthly instalment paymentDateParticularsDt (RM)Cr (RM)2019May 1Interest Expense Mortgage PayableBank1,093.75528.531,622.28
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