Bank Reconciliation Statement Analysis

This assignment focuses on analyzing a provided Bank Reconciliation Statement. It involves examining the statement of account, including details like balance forward, cash inflows, outflows, and transfers. The goal is to understand how the statement reconciles bank records with the company's internal records, highlighting any discrepancies or adjustments needed.

ACCOUNTING

TABLE OF CONTENTS
QUESTION 1...................................................................................................................................1
1. Game changers of businesses and consequences of less hierarchical business models.....1
2. Importance of competent leadership..................................................................................1
3. Core leadership and additional new qualities.....................................................................1
4. Alterations in leadership roles and skills via automation and artificial intelligence..........1
5. Overlap between soft and employability skills..................................................................2
6. Critical Leadership skills....................................................................................................2
7. Role of trust........................................................................................................................2
8. Expectation of modern professional accountants...............................................................2
9. Identification of soft and critical leadership skill...............................................................2
QUESTION 2...................................................................................................................................3
1. Measuring the variable cost................................................................................................3
2. Measuring the contribution margin per unit.......................................................................3
3.Profit equation in relation with terms of motor sold...........................................................3
4. Drafting a Cost volume profit graph..................................................................................4
5. Break even analysis............................................................................................................4
6. Analysing the current profit or loss....................................................................................5
7. Changing the suppliers.......................................................................................................5
8. Decision based on importing motors or buying in Australia..............................................5
QUESTION 3...................................................................................................................................6
A. Sales Budget......................................................................................................................6
B. Purchase Budget................................................................................................................6
QUESTION 4...................................................................................................................................7
1. GST analysis.......................................................................................................................7
2. General Journal Entry.........................................................................................................7
3. Balance sheet......................................................................................................................7
4. Modification of transactional entries..................................................................................8
QUESTION 5...................................................................................................................................8
1. General Ledger Cash..........................................................................................................8
2. Bank Reconciliation Statement..........................................................................................8

REFERENCES................................................................................................................................9

QUESTION 1
1. Game changers of businesses and consequences of less hierarchical business models
The modern age is referred as game changer for business and leader perspective. The
combination of rapid technological development, globalisation and emergence of knowledge and
data is altering each and everything. In the same series, different external factors via
technological alteration for raising complexity in business and rush towards alterations in
auditors. The report of audit could be great opportunity for various changes to break its mould
and for demonstrating audit value.
The emergence of innovative business models and business entity are considered as less
hierarchical. Ideas and innovation could be emerged everywhere but concerned point is stated
with capability for encouraging development and for recognition of the best aspect.
2. Importance of competent leadership
Competent leadership is very important skill in digital age due to rapid evolution, risky,
messy, unpredictable time as it provides in-surety about technological development. In this
environment, leaders which are outstanding are referred as very important currency.
3. Core leadership and additional new qualities
Core leadership qualities: Motivational skills, emotional intelligence and team building
Additional new qualities: domain expertise, authority, decisiveness, short term task focus
In the present scenario, leaders should be capable for understanding impact of technology
with aspect of business. Technical expertise is second requirement but prior it must be capable
for forecasting both potential negative impact of technology and opportunity as well.
4. Alterations in leadership roles and skills via automation and artificial intelligence
The major driving force is refereed as impact of artificial intelligence, automation and
machine learning in workplace partly as machines are taking over elements which are according
to task with context of leadership. Automation provides wider implications for employees in
leadership as it provides increment about guidance and reassurance for business leaders with
context of workplace's future and their jobs. The organization with artificial intelligence holds
specific record for raising exercises of the fastest capital.
1

5. Overlap between soft and employability skills
Communication, problem solving, teamwork are major skills which are overlapped in
soft and employability skills. The major areas such as finance and research and development has
huge requirement.
6. Critical Leadership skills
The critical leadership skills are:
Adaptability: It is referred as openness to innovative ideas and presence of willingness for
altering mind during performance as it could threaten leader's ego as well.
Vision: It is considered as very important for business entity as it is very vital in this digital
world as business models are disrupted constantly and it has presence of high uncertainty
of short term.
Humility: It is referred as leader’s evolution about requirement of learning in context of
digital age, knowledge could be originated from anywhere.
7. Role of trust
Trust among customer and business entity has gained innovative level of importance. The
most important role of CEO is for building trust. Employer belongs to safe house in context of
global governance as major employer performs what is right for organization. Business entity
take particular actions for raising profit and to improve social and economic conditions.
8. Expectation of modern professional accountants
All the alterations must be capable for deep integration, relevant and broad technical
expertise along with professional and ethical skills provides forward thinking strategic
capabilities and advanced skill set must be shaped for future of global business (Accountancy
Futures, 2018).
9. Identification of soft and critical leadership skill
Strong skill: Communication and leadership
Weak skill: Problem Solving abilities
To improve problem solving capability to work with logic puzzles, reading idea journal
and to be updated with present scenarios. In the same series. Problem should be understood and
special focus must be laid. Things should be simplified and all possible solutions must be listed
and thinking process should be lateral
2

QUESTION 2
1. Measuring the variable cost
Particulars Details Details Amount
Less: Cost of goods sold
Direct labour 20*8000 160000 160000
Purchase in China 2*8000 16000
Imports in Australia 0.05*8000 400
Part added in motor 0.45*8000 3600 20000
Total variable cost 140000
2. Measuring the contribution margin per unit
Particulars Details Details Amount
Sales revenue 23.50*8000 188000
Less: Cost of goods sold
Purchase in China 2*8000 16000
Imports in Australia 0.05*8000 400
Part added in motor 0.45*8000 3600 20000
Direct labour 20*8000 160000 160000
Total variable cost 140000
Contribution margin per unit 48000
3.Profit equation in relation with terms of motor sold
As per considering the operational efficiency of Marty Motors with respect of making
sales in a year on which it can be said that, it consists of higher labour charges has been payable
by the organisation on motor's dealing. Thus, it will be suggested that there is need to implicate
less cost on labours which in turn will affect business in making improper operational control.
3

4. Drafting a Cost volume profit graph
5. Break even analysis
Break even analysis Details Amount
Selling price per unit 23.5
Less: Variable cost per unit
Purchase in China 2
Imports in Australia 0.05
Part added in motor 0.45
Direct labour 20 22.5
1
Fixed cost 60000 60000
Contribution per unit 48000 1.25
Breakeven point 60000*23.50 1410000
4

6. Analysing the current profit or loss
Particulars Details Details Amount
Sales revenue 23.50*8000 188000
Less: Cost of goods sold
Purchase in China 2*8000 16000
Imports in Australia 0.05*8000 400
Part added in motor 0.45*8000 3600 20000
Direct labour 20*8000 160000 160000
Total variable cost 140000
Contribution margin per unit 48000
Less: Foreman payments 80000
Add: Fixed overheads 20000
Net profit/ Loss -12000
7. Changing the suppliers
Particulars Details Details Amount
Sales revenue 23.50*8000 188000
Less: Cost of goods sold
Supplier charges 8000*4 32000
Contribution 156000
Less: Fixed Overheads 20000-2000 18000 18000
Profit 138000
8. Decision based on importing motors or buying in Australia
As per analysing cost implied on each motor vehicle on which importing it or developing in
Australia has variations in prices. Thus, in terms of analysing the costs there can be variations in
cost of purchasing the motor is around $2 and in case of developing such commodities in
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Australia which is of $0.05. Thus, in this case manufacturing the Motor vehicle in Australia will
be helpful in reducing the costs implied in each activity.
QUESTION 3
A. Sales Budget
Particulars August September October November December January February March
38000 40000 46000 50000 56000 40000
Sales 80% 30400 32000 36800 40000 44800 32000
Credit sales 7600 8000 9200 10000 11200 8000
Customer
pays 60%
in
following
month 0 22800 24000 27600 30000 33600 24000
Customer
pays 38%
in next
following
month 0 0 14440 15200 17480 19000 21280 15200
Un-
collectable
payment
2% 760 800 920 1000 1120 800
Total
collection 760 23600 39360 43800 48600 53400 45280 15200
B. Purchase Budget
Purchase Budget August September October November December January February M
38000 40000 46000 50000 56000 40000 48000 56
Cl. Inventory (25%) 10000 11500 12500 14000 10000 12000 14000
Total required
stock 48000 51500 58500 64000 66000 52000 62000 56
Less: Opening stock 10000 11500 12500 14000 10000 12000 14
Budgeted purchase 48000 41500 47000 51500 52000 42000 50000 42
Purchase ($10) 10 10 10 10 10 10 10
Cost of Purchase 480000 415000 470000 515000 520000 420000 500000 42
Cash payment of 0 480000 415000 470000 515000 520000 420000 50
6

Purchase
QUESTION 4
1. GST analysis
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2. General Journal Entry
Date Particulars DR CR
14-Jan
Sale commission a/c
dr 8800
to cash 8800
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3. Balance sheet
Assets Amount Liabilities Amount
Cash 8800 Accounts payable 10262.8
Accounts
Receivables 4950 Notes payable 5000
GST paid 9082.8 PAYG 6000
Inventory 880 total liabilities
Supplies 770 Owner's equity
Prepaid Rent 5280 capital 3000
Sales commission 8800
Prepaid insurance 3300
Total Assets 33062.8
Total Liabilities and
Equity 33062.8
4. Modification of transactional entries
In relation with analysing the transitional approaches of business it can be said that entry
which were made for advance sales commission of February month had been payable in January.
Thus, it must be modified and invoices has to made after the completion of relevant transactions.
QUESTION 5
1. General Ledger Cash
Tan Music Store- General Ledger
Cash at bank 101
Date Particulars Jn. Ref DR CR BAL
1.1.2018 Balance bd 8200 DR
31.1.2018 Receipts CRJ 1 14715 22915 DR
31.1.2018 Payments CPJ 1 6955 15960 DR
2. Bank Reconciliation Statement
Statement of Account
Date Particulars DR CR Balance
01-Jan Balance forward 8200 CR
06-Jan C/C 1085 9285 CR
09-Jan BPAY Optus 250 9035
Transfer- Oz loans 800 8235
14-Jan C/C 6880 15115 CR
600 400 14715 CR
17-Jan 601 450 14265 CR
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19-Jan C/C 3000 17265 CR
20-Jan Transfer- KM 200 17065 CR
Transfer- GY 250 16815
Transfer- RP 600 16215 CR
23-Jan C/C 2000 18215 CR
25-Jan 602 550 17665 CR
C/C 800 18465
26-Jan
DD Commander
Phones 90 18375 CR
27-Jan BPAY BCC 1850 16525 CR
27-Jan 604 1055 15470 CR
DC- Interest 10 15480 CR
Bank fees and charges 6 15474 CR
10