Management Accounting: Techniques, Advantages and Importance

MANAGEMENT ACCOUNTING 1
ACCOUNTING

MANAGEMENT ACCOUNTING 2
Contents
Question 1:.................................................................................................................................4
Question 2:.................................................................................................................................8
Question 4:.................................................................................................................................9
Question 5:...............................................................................................................................12
Question 6:...............................................................................................................................16
Question 7:...............................................................................................................................17
Question 8:...............................................................................................................................19
Question 9:...............................................................................................................................22
Question 10:.............................................................................................................................23

MANAGEMENT ACCOUNTING 3
Question 1:
The following are the relevant workings:
Bank reconciliation as at 31 August 2018
Cash balance as per bank
statement
$25,720.9
2
Add: Outstanding Deposits $1,190.40
Less: Unpresented Cheques
- Chq 1470 $410.00
- Chq 1474
$1,027.0
0
- Chq 1478 $538.20
- Chq 1481 $807.40
- Chq 1483
$2,360.0
0
- Chq 1484 $832.00
- Chq 1486 $972.00 $6,946.60
Cash balance as per ledger (should have
been)
$19,964.7
2
Journal
Entries Dr. Cr.

MANAGEMENT ACCOUNTING 4
01-08-
2018 Bank Fee A/c $60.00
01-08-
2018 To Bank A/c $60.00
(Being Bank Fee recorded)
12-08-
2018 Bank A/c $2,423.00
12-08-
2018 To Accounts Receivables A/c
$2,423.0
0
(Being direct deposit by Debtor recorded)
18-08-
2018 Bank A/c $1,000.00
18-08-
2018 To Accounts Receivables A/c
$1,000.0
0
(Being cheque of $1,922 correctly recorded in place of
$922)
18-08-
2018 Accounts Payable A/c $475.50
18-08-
2018 Bank A/c $475.50
(Being cheque no. 1482 of $475.50 recorded)
20-08- Bank A/c $9.00

MANAGEMENT ACCOUNTING 5
2018
20-08-
2018 To Accounts Receivables A/c $9.00
(Being cheque of $2,954 correctly recorded in place of
$2,945)
24-08-
2018 Accounts Payable A/c $90.00
24-08-
2018 Bank A/c $90.00
(Being cheque no. 1485 of $540.80 correctly recorded in
place of $450.80)
30-08-
2018 Bank A/c $148.62
30-08-
2018 To Interest received A/c $148.62
(Being Interest Received Recorded)
Bank Ledger A/c
Date Particulars
Amount
Debit Date Particulars
Amount
Credit
01-08-
2018 To Opening Balance $11,085.60
01-08-
2018 By Bank Fee $60.00
03-08- To Accounts $1,211.60 01-08- By Accounts $1,640.70

MANAGEMENT ACCOUNTING 6
2018 Receivable 2018 Payable
07-08-
2018
To Accounts
Receivable $2,365.10
02-08-
2018
By Accounts
Payable $1,300.00
12-08-
2018
To Accounts
Receivable $2,423.00
02-08-
2018
By Accounts
Payable $2,130.00
15-08-
2018
To Accounts
Receivable $2,672.70
04-08-
2018
By Accounts
Payable $538.20
18-08-
2018
To Accounts
Receivable $1,922.00
08-08-
2018
By Accounts
Payable $2,180.00
20-08-
2018
To Accounts
Receivable $2,954.00
10-08-
2018
By Accounts
Payable $600.00
25-08-
2018
To Accounts
Receivable $2,567.30
17-08-
2018
By Accounts
Payable $807.40
28-08-
2018
To Accounts
Receivable $2,836.00
18-08-
2018
By Accounts
Payable $475.50
30-08-
2018
To Accounts
Receivable $3,025.00
22-08-
2018
By Accounts
Payable $2,360.00
30-08-
2018
To Accounts
Receivable $1,190.40
23-08-
2018
By Accounts
Payable $832.00
30-08-
2018 To Interest Received $148.62
24-08-
2018
By Accounts
Payable $540.80
30-08-
2018
By Accounts
Payable $972.00
30-08-
2018
By Closing
Balance $19,964.72
$34,401.32 $34,401.32