POA Last Minute Revision Notes

Roleofaccounting <providesaccountinginformationforstakeholderstomakedecisions W ~ generatedbyaccounting usersofbothaccountingand informationsystem non-accountinginformation~ extractedfrombooks ofabusinesstomakedecisions ofbusiness ~ qualitativeinformation Stakeholders(common) <ownerandmanagersassessrelevantintotorun businessefficiently >employeesassesstheabilityofbusinesstopaysalaries Roleofaccountant ~actasstewardsofbusinessesresponsibleforprovidingaccountingintofor stakeholderstomakedecisions Cproviderelevantinformationinatimelymanner basedon accounting theories >mustadheretoprofessionalethicssothatstakeholders'canplacetrust thattheinformationprovidedaretrueandaccurate W ~objectivityintegrity >notlettingbias,conflict cbeingstraightforward ofinterestorundueinfluence andhonestinallbusiness ofothersoverrideprofessional andprofessionalrelationship judgement Tradingbusiness servicebusiness cbuysandsellsgoods )providesservicestocustomersto toearn income earn income

Bankreconcilation >Identifyerrorsinthecashat bankaccount >Identifyerrorsinthebankstatement &Discoveranddeterfraud >Ensurethatthecasnatbank balanceisuptodate DifferenceinCABbalance andbankstatement balancedueto: timingdifferenceinrecordingbythebank?business errorsmadebythebusinessorthebank casnatbankalc <preparedbytheBUSINESS >Assettobusiness:debitinnature - DebitCredit Balance ~ ~ + - BankStatement >preparedbytheBANK >Liabilitytobank:creditinnature - DebitCredit Balance (Withdrawals)(Deposits)~ ~ - T Extra:Bankoverdrafts onemoneytobank &youareadebtortothebank ~ receivable ~ debitbalance inbankstatement

eg.Qul samebeginningbalance CABal Date Particulars DebitCredit Balance 2021 $ $ $ JanI Balancebld 20000Dr 3 Rentexpense(Chequeno:120) 3000 17 000Dr 16TomTrading(Chequeno:121 ( 1000 16000Dr 18AndySupplies 10000 26000Dr 22 CommissionIncome 2000 28000Dr 28 CindyFlowers/Chequeno:122) 5006 23000Dr 29KeithFactory 1500 24500Dr BankStatement Date Particulars WithdrawalDepositBalance 2021 $ $ $ Jan1Balancebld 20000[v 5Chequeno:128 3006 17000Cr 19Crequeno:121 1000 16000cr 20 Chequedeposit 10000 26000r 22 casn 2000 28000cr 23Rent 10000 18000Cr 24DirectdebitAn SengStore 2800 15200cr 25DirectCredit AnLianShop 1100 16300cr 31Bankcharges 25 10275Cr

RecordthemissingitemsintheBankStatement (a)AdjustedcasnatbankalforJanuary2021 casnatbank alc Date Particulars Debit credit Balance 2021 $ $ $ Jan31Balanceb/d 24500DR 31 Rentexpense 10000 14500DR 31 Tradepayable,AnSengstore 2800 11700DR 31 Tradereceivable,AnLanShop 1100 12800DR 3 Bankcharges 25 12275DR Feb1 Balancebld 12275DR Recordthemissingthingsinthecashatbankall (b)BankreconcilationstatementasatJanuary2021 BankreconcilationstatementasatJanuary2021 S Balanceasperbankstatement 16275 Add:Depositintransit KeithFactory 1500 Less:Chequesnotyetpresented CindyFlowers 15000) Balanceasperadjustedcasnatbankaccount 12775 On2 differentbeginningbalance · calculate the differenceandticktheitemwhichwillappearinthe bankstatement · differenceeitherduetoCNYP/DITfromprev. month · bothalr, recordedtheItem, noneedtodoanything

Qu3 dishonouredcheck · justensure thatyoucan locatethecheque an4 debitbalanceasperbankstatement · willbeshown asanegativefigureinthebankreconcilationstatement ~putbracket (XX) an5 Errormadebybusiness · findthechequeandjustadjusttheamount ~ debit/credittheamount Qn6 Errormadebybank · findthechequeandjustadjusttheamount ~ debit/credittheamount · IfitsunderWithdrawaleg. CABalcCredit1470 butbankstatementsayswithdrawal147 ~ Withdrawal tocorrectit,will 1323 L furtherwithdraw W Recordinthebankreconcilationstatement underless:bankerror