Research and questioning
1. Using the deposit forms overleaf, you are to prepare the days takings for banking. Income details are as follows.
$38 from Erik Syed – NAB Cheque No 00000125 Brisbane CBD Branch
$125 from ABC Pty Ltd – CSB Cheque No 00025458 Collins Street Melbourne Branch
$77 from Loyola Airvey – CSB Cheque No 00070144 Heidelberg Branch
$42.25 from Laura Rose – Bendigo Bank Cheque No 07841 Bendigo Branch
$91.98 from Jayden Scott – ANZ Cheque No 100448 Sydney CBD Branch
2. Mr. Smith of Smiths Signs received a bank statement on 21 July showing a balance of $400 in the firms account. He is somewhat confused, as his own records indicate a balance of only $75. Upon closer inspection, the following differences were noted between the two records.
– A deposit of $80 made out on 31 July does not appear on the bank statement.
– Two cheques written out on 26 July are also missing from the bank statement. They are cheques numbers 4561 for $180 and 4562 for $225.
Prepare a bank reconciliation statement for Mr. Smith as at 31 July.
Mr. Smith of Smiths Signs
Bank Reconciliation Statement as at 31 July
3. Gary Burton is the proprietor of Burton’s Bourbon. On 31 August a bank statement was received and it showed a balance of $625 in the firm account. According to the cash journals kept by Mary, he should only have $220 in the bank. A comparison of the two records revealed the following differences
Prepare a bank reconciliation statement for Burton’s Bourbon as at 31 August and adjust the business records to be reconciled with the bank statement.
Bank Reconciliation Statement as on 31 August
4. The journals shown below were prepared for Gelling Swim Centre for the month of March 2010. On 1 March the business had $2,400 in bank.
a. Compare the bank statement information on the page with the firms records and update the journals, if necessary
b. Calculate the cash at bank balance according to the firms records
c. Prepare a bank reconciliation statement as at 31 March 2010
Gelling Swim Centre
Bank Reconciliation Statement as on 31 March 2010
5. What steps should you take to ensure the cheque you receive off a client / customer is valid. (List 5 steps)......
There is no definitive answer as to how to authenticate a cheque, though there are few points one can take to prevent a fraudulent cheque. There are few items to check on:
6. What should you check when accepting payment via credit card in person?
There are also some more technical ways to examine whether the credit card is valid. According to the tips by WestStar bank, there are 9 ways to spot a fake credit card.
First, look at the numbers to ensure they are evenly spaced and aligned. A counterfeiter typically uses an aftermarket tipper/embossing machine that handles one number at a time. As such, numbers are often skewed.
Next, check to see if the account number matches the card name. Amex will start with a 3, Visa with a 4, MasterCard (MC) a 5 and Discover with a 6. You would be surprised how many thieves fail to do their basic homework.
For more details, please refer to the website.
7. As a minimum, when processing a credit card-not-present transaction, what information should you collect from the customer?
If the merchant uses an online payment system, the system should be able…...
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