ACCT 101 SEU Principles of Accounting Questionnaire

Q1– 

A. What is a bank reconciliation and why is it important for companies to do it periodically?

B. Prepare a Bank Reconciliation Statement for XYZ company that has:

• Bank statement of SR9,000.
• Cash account of SR7,500.

Additional information for the reconciliation:

• Deposit in transit.
• NSF Check.
• Outstanding check.
• Collections made by the bank.

Required: provide an amount of each information to bring the adjusted balances to be equal (3 Marks).

Q2–

Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible. 

Provide an amount of sales and prepare the journal entry using the percent of sales method (2 Marks).

Q3–

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory (3 Marks).

January 1:

Purchased 100 units   at SAR10 per unit

February 5: 

Purchased 60 units   at SAR 12 per unit

March 16:

Sold 40 Units for   SAR 16 per unit

Prepare general journal entries to record the March 16 sale using the 

• FIFO inventory valuation method.
• LIFO inventory valuation method.

Q4. A company wants to implement good internal control. What are the policies and procedures you can suggest to minimize human frauds and errors? (2Marks)