Grade 11 Bank Reconciliation Work
45 marks; 22 minutes
Revision – Extra exercise
The given information was taken from the books of Bigg Traders on 31 October 2009.
INSTRUCTION
1.
Enter the supplementary entries direct to the Bank account and balance the account
on 31 October 2009.
2.
Prepare the bank reconciliation statement on 31 October 2009.
(28)
(17)
INFORMATION
BANK RECONCILIATION STATEMENT ON 30 SEPTEMBER 2009
Debit
Credit
Debit balance according to Bank Statement
6 560
Credit deposit not credited by bank
8 190
Debit cheques not presented for payment
No 324
500
No 432
925
No 451
750
No 460
2 540
Credit Balance as per bank account
3 085
11 275
11 275
A comparison of the Bank statement for October 2009 with the Bank reconciliation statement on 30
September 2009 and the cash journals for October 2009 revealed the following differences:
1.
The Bank statement on 31 October 2009 showed a credit balance of R2 136.
2
Entries on the Bank statement which do not appear in the cash journals for October:
(a)
Credit entries
• deposit, R8 190
• deposit, R3 100 (deposited by the tenant, Medi Pharmacy)
(b)
Debit entries
• Cheque 451, R570. This cheque was issued to Riteshops in payment of the account
and was recorded incorrectly in the Cash payments journal for September 2009.
• Unpaid cheque, R285 (received from a debtor, B. Botha, in settlement of his
account of R300; was dishonoured owing to insufficient funds)
• Unpaid cheque, R450 (received from a debtor, S. Louw, was dishonoured because
it was post-dated for 5 November 2009)
• Debit order, R375 (in favour of City Council to pay the rates for October)
• Stop order, R350 (in favour of SA Insurers to pay the personal insurance of the
owner, B. Bigg.)
• Service fees, R280
• Credit card levy, R475
• Levy on debit transactions, R2 10
• Interest on overdraft, R619
3.
Entry in the Cash receipts journal for October 2009 which does not appear on the Bank statement:
Deposit, R3 280
4
Entry in the Cash payments journal for October 2009 which does not appear on the Bank statement:
Cheque 482, R1 700 (dated 27 October 2009)
Cheque 489, R1 850 (dated 4 November 2009)
Additional Information and errors discovered
1
Cheque 324 was issued as a donation to the WP Soccer Club on 13 July 2009. As the club no longer
exists the cheque must be cancelled.
2
Cheque 432 was issued to Statsales Limited to pay for stationery. The cheque was lost in the
post. It must be cancelled and replaced by cheque no. 491.
3
The totals of the bank columns of the cash journals before the comparisons were made were
as follows:
Cash receipts journal, R35 680
Cash payments journal, R34 930
BANK
BANK RECONCILIATION STATEMENT ON ------------------------------------------Debit
Credit
MEMO
BANK
Oct
31 Total receipts
CRJ
35680  Oct
1 Balance
b/d
3085 
CPJ
34930 
3100 
Total Payments
Creditors Control
180 
Debtors Control
285 
Donation
500 
Debtors Control
450 
Stationery
925 
Rates and Taxes
375 
Drawings
350 
Bank Charges
965 
Interest on Overdraft
619 
Stationery
925 
Rent Income
Balance
c/d
1599 
41984
41984
Nov
1 Balance
b/d
1599 
29marks
BANK RECONCILIATION STATEMENT ON ----31 October 2009---Debit
Credit
Credit balance per bank statement
2136
Credit outstanding deposit
3280
Debit cheques not presented for payment: no. 482
1700

No. 489
1850

No. 491
925

No. 460
2540

Credit balance as per bank account
1599
7015
7015

16marks