Accounting Report: Bank Reconciliation, Journal Entries, and Ledgers

This accounting report provides a detailed overview of essential accounting concepts. It begins with an introduction emphasizing the importance of accounting for businesses, followed by an explanation of the steps involved in preparing a bank reconciliation statement, highlighting the use of Excel spreadsheets in managing accounts receivable. The report addresses a discrepancy between a bank statement and accounts payable ledger, outlining the cause and the necessary rectification. It also covers the broad categories of conduct expected of tax practitioners, including honesty, independence, confidentiality, and competence. The report then presents journal entries for various transactions, including contra entries and bad debts, and provides recommendations for managing customer accounts based on their payment history. Finally, it includes an accounts receivable account and concludes by reiterating the significance of accurate accounting records.

Accounting certificate 4

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Question 1 Summary of steps to prepare bank reconciliation................................................1
Question 2 Use of excel spreadsheet......................................................................................1
Question 3 Outlining cause of discrepancy............................................................................1
Question 4 Broad categories of conduct.................................................................................2
Question 5 Producing journal entries ....................................................................................2
Question 6 Recommendation to customers............................................................................3
A) Table..................................................................................................................................3
B) Attached in separate document..........................................................................................3
C) Journal entry......................................................................................................................3
Question 7 Accounts Receivables account.............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Accounting is quite essential for the business to prepare accounting statements in
effective manner. Present report deals with preparation of subsidiary ledgers, passing journal
entries for transactions. Moreover, bank reconciliation steps are also explained. Discrepancies
have been resolved in effective way to rectify mistakes and prepare accurate accounting records.
Question 1 Summary of steps to prepare bank reconciliation
Bank reconciliation statement is quite useful for balancing accounts for attaining
transparency of total cash balance in effective way. There are five steps of completing bank
reconciliation, they are listed below-
1. First step is to enter date of bank statement and ending balances of both bank and book of
company in template.
2. Next step is to scrutinise all outstanding checks that are already been recorded but not cleared
by bank in the account.
3. Outstanding deposits should be recorded for adjusting variance in bank and book balances.
4. Outstanding adjustments shall also be recorded if cash account has been credited but bank
balance does not reflect the same (Fujimoto).
5. Last step is to balance accounts and identify if discrepancy still occurs. If it prevails, then,
accounting registers should be checked for analysing and correcting the balance.
Question 2 Use of excel spreadsheet
Excel spreadsheet is important for accounts receivable clerk. This is essential as
outstanding amount from debtors are required to be recovered. Accounting clerk analyses by
entering data in excel and assess outstanding payment to be paid by customers. Credit sales can
be analysed in one row and adjacent to that money outstanding can be entered. Thus,
organisation comes to know about amount and may easily collect from clients. Furthermore,
excel can be used for preparation of graphs for assessing payment in pictorial representation.
Question 3 Outlining cause of discrepancy
There is a discrepancy between bank statement and accounts payables subsidiary ledger
of Trusty Traders. There is a posting mistake as balance in bank statement was prepared up to 25
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June and bank deposit was done on 30 June. Thus, to rectify, entry shall be posted in bank
records from next month. Hence, both book and bank balance will match.
Question 4 Broad categories of conduct
The categories of conduct are-
1. Honesty and integrity-
This principle states that tax practitioners must follow and comply with taxation laws.
Money obtained from client should be fairly accounted for (Schaltegger and Burritt, 2017).
2. Independence-
Practitioners shall act in accordance to laws and best interest of clients. Management of
conflicts should be resolved in capacity of tax agent registered under board.
3. Confidentiality-
No information should be disclosed without prior permission of clients.
4. Competence-
Knowledge and skills should be maintained and client's state of affairs shall be accounted
for. Services should be provided competently on behalf of customers.
5. Other responsibilities-
Practitioners shall not intentionally forego laws and regulations. Moreover, professional
indemnity insurance should be maintained as per Board norms (Libby, 2017).
Question 5 Producing journal entries
General Ledger
Date Particulars Debit Credit
30 -June Accounts payable a/c Dr 3400
To Accounts receivable a/c 1200
To Cash a/c 2200
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(Being contra entry made)
30 -June Bad debts a/c Dr 1078
To Sundry debtors a/c 1078
(Being written off bad
debts)
Question 6 Recommendation to customers
A) Table
Customer Recommended action
H Harry The action in terms of debtor is that it falls under category of 31-60 days and as
such, sticker should be attached with next statement.
P Peters This debtor has not made payment even after 90 days. Thus, final warning should
be given for immediate payment or initiating XY Collections to recover money on
behalf of firm (Givoly, Hayn and Katz 2017).
S Smith This debtor has dual outstanding amount. First amount of 1200 should be attached
with sticker and carry forward to next statement. Remaining amount of 800 falls
under 61-90 days category, thus, no further extension to credit be given if payment
is not done within 14 days.
B) Attached in separate document
C) Journal entry
Date Particulars Debit Credit
30- September Bad debts a/c Dr 1650
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To Sundry debtors a/c 1650
(Being written off bad
debts)
Question 7 Accounts Receivables account
Accounts
receivable- Lily
Letty
Date Particulars Debit Credit Balance
01/06/18 Balance 1200 Dr
15/06/18
Sales and GST
collected 500 700 Dr
20/06/18 Bank 200 900 Dr
CONCLUSION
Hereby it can be concluded that accounting plays significant role in the company.
Various subsidiary ledgers for both accounts receivables and payables are quite useful for
business. Thus, it is quite essential for attaining accurate accounting records.
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REFERENCES
Books and Journals
Givoly, D., Hayn, C. and Katz, S., 2017. The changing relevance of accounting information to
debt holders over time.Review of Accounting Studies. 22(1). pp.64-108.
Libby, R., 2017. Accounting and human information processing. In The Routledge Companion to
Behavioural Accounting Research (pp. 42-54). Routledge.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Online
Fujimoto, 2012 Bank Reconciliation Template: 5 Easy Steps to Balance Your Accounts [Online]
Available Through: <https://blog.scottsmarketplace.com/bank-reconciliation-template/>
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