Imagine that You have been Appointed as an Accountant for a Business: Financial Accounting Assignment, BMC, Singapore

Project Details:

1. Imagine that you have been appointed as an accountant for a business. The business received its bank statement for the month of March 2019. The closing balance in the statement and your cash book’s bank column you prepared for the month of March 2019 not tallied. Your manager is asking the reasons for which. Explain to him what are the possible causes to have discrepancies in both balances and explain each cause with examples.

2. Using the information given below

• Prepare the cash book bank column with the new closing balance.
• Prepare the bank reconciliation statement.

3. As you are the accountant for the business mentioned above, advise your manager about the errors which are not affecting the trial balance. Your answer should include the types of those errors and their illustrations with 2 examples for each type of errors.

4. Explain the concept of control accounts (Your answer should include the purpose of control accounts, types, procedures to open, examples for each type).

5. When preparing the trial balance by you for the business mentioned in question 1, both debit and credit side balances not balanced.

• How could you solve this by using a suspense account?
• As you know that suspense accounts are temporary solutions, how could you clear the suspense account before preparing the statement of financial position? (your answers for the a) & b) must include an example)

6. The purchase ledger control account balance is $3, 230 (Cr) But the purchases ledger’s individual accounts’ total balance is $4,010 (Cr).
After a complete check of all accounts in the payables ledger, the following was revealed.

• An invoice of $500 in the trade payables ledger not included in the trade payables ledger control account.
• A credit sale of $250 (which should be in the trade receivables ledger) erroneously debited in the trade payables ledger.
• When calculating total ending balances in the trade payable ledger undercast by $150
• Return inwards of $120 posted in error to the credit side of the trade payables ledger. Which should be included in the trade receivable ledger’s credit side.

Prepare the trade payables ledger control account reconciliation.