Answer to Question No BR1: Company A Bank Reconciliation as at 31 st July 2006 $ Balance as per bank statement at 31 st July 2006 55,262 Add: Deposits in transit / Uncredited deposits 1,300 56,562 Deduct: Unpresented cheques Check No 6661 dated July 20th $380 6662 dated July 27th 1,050 Adjusted … Read more
Question No BR1: In early August 06, Company A received a bank statement which showed a balance of $55,262 as at 31 th July’06. However, its own record showed a balance of $55,597 on the same date. The following differences are identified: (i) Deposits amounted to $1,300 was not in the bank statement; (ii) Two … Read more
Revision Notes on Financial Statements: Salient points: 1. Understand WHO reads the financial statement Equity Investor group, loan creditor group, employee group, analyst-adviser group, business contact group, government and public group 2. Understand the users’ PURPOSE of reading the financial statement Assess the stewardship of management on the use of the economic resources … Read more
Revision Notes: Adjustments To Trial Balance Salient Points: 1. Understand WHAT are adjusting entries: Are journal entries made at end of month or year in order to match all expenses in the current month/year against the revenue associated to them; Based on Matching concept 3. Understand HOW MANY GROUP of adjusting … Read more
The vein of an organization is the cash flow. In earlier article, we understand that cash flow statement is an integral part of the financial statements. We can derive useful ratios the cash flow statement so as to assist us to evaluate the cash sufficiency of the entity. When we say cash sufficiency of an entity, … Read more
The vein of an organization is the cash flow. In earlier article, we understand that cash flow statement is an integral part of the financial statements. We can derive useful ratios the cash flow statement so as to assist us to evaluate the cash sufficiency of the entity. When we say cash sufficiency of an … Read more