The corrected bank reconciliation by showing the unexplained difference, find the amount of theft, and discuss the ways the theft was concealed by the bookkeeper

Question

XYZ LLC dealing all its transactions through its bank to avoid employee fraud and theft. For offering daily services,the bank debited OMR 20 to the bank account and the company unaware it.How will you adjust the above reconciliation item in bank reconciliation statement? a. Add OMR 20 to the company's bank statement balance b. Add OMR 20 to the company's cash book balance c. Deduct OMR 20 from company's cash book balance d. Deduct OMR 20 from the company's cash book balance

Answer 1

Question

Chapter 4, Problem 4.50CEP

To determine

To prepare: The corrected bank reconciliation by showing the unexplained difference, find the amount of theft, and discuss the ways the theft was concealed by the bookkeeper

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

XYZ LLC dealing all its transactions through its bank to avoid employee fraud and theft. For offering daily services,the bank debited OMR 20 to the bank account and the company unaware it.How will you adjust the above reconciliation item in bank reconciliation statement? a. Add OMR 20 to the company's bank statement balance b. Add OMR 20 to the company's cash book balance c. Deduct OMR 20 from company's cash book balance d. Deduct OMR 20 from the company's cash book balance

Using the reconciling items below, prepare a bank reconciliation for the September 30, 2021 year end. For every item on the bank reconciliation, explain what supporting evidence you would obtain to test the item (be specific, do not just say “look at supporting documentation”). Also, provide your conclusion – based on your bank reconciliation, is the cash balance in the client’s books correct? If not – quantify the error. 1. Cash balance per client $100,000 2. Cash balance per the bank statement $100,000 3. The company wrote mailed the following cheques on September 30, 2021, which did not get cashed until October 2, 2021. a. Cheque 1234 $2,000 b. Cheque 2345 $4,000 c. Cheque 3456…

To prevent embezzlement, what can you do to protect your operation against it? a) Make bank deposits daily. b) Ensure that the individual that makes daily deposits is bonded. c) Review and approve bank statement reconciliations each month. d) All of the above e) Only a. and b. above