1 2021 Bank Reconciliations DBE QUESTION 1 1.1 CASH RECEIPT JOURNAL - MARCH 2020 CRJ 3 Doc Day Details Bank Amount Details 30 Total 118 960 B/S P.Piet 8 500 8 500 Rent income B/S Mona Bank 96 96 Interest income 7 127 556 CASH PAYMENT JOURNAL - MARCH 2020 CPJ 3 Doc Day Details Bank Amount Details 30 Total 40 400 B/S Fast Insurers 4 400 4 400 Insurance Water and electricity B/S Parys Municipaliy 4 150 4 150 B/S Mona Bank 430 430 Bank charges 49 380 1.2 10 GENERAL LEDGER OF DADDY STORES Bank 2020 Mar 1 Balance 2020 Mar 31 Sundry Accounts b/d 12 340 127 556 2020 Mar 31 Sundry Accounts 49 380 Balance 90 516 139 896 Balance 1.3 139 896 7 90 516 Prepare a Bank Reconciliation Statement for March 2020. Debit Balance according to bank statement Cr. Outstanding deposit Dr. Outstanding EFT No 6 Dr. Balance according to the bank account Credit 81 916 21 000 12 400 90 516 See 1.2. 102 916 102 916 both figures must be the same 5 Copyright reserved Please turn over 2 Bank Reconciliations 2021 DBE QUESTION 2 2.1 CASH RECEIPT JOURNAL - MARCH 2020 CRJ 3 Doc Day Details Bank Amount Details 30 Total 116 000 50 000 B/S M. Mashiane 7 500 7 500 Rent income B/S D. Dlamini 1 250 1 250 Debtors Control B/S Disa Bank 75 75 Interest income 124 825 10 58 825 CASH PAYMENT JOURNAL - MARCH 2020 CPJ 3 Doc Day Details Bank Amount Details 30 Total 54 700 5 700 B/S Quick Insurers 3 900 3 900 Insurance B/S Town Council 3 600 3 600 Water and electricity B/S Disa Bank 725 725 Bank charges 62 925 2.2 13 925 (388 + 212 + 125) 10 GENERAL LEDGER OF DADDY STORES Bank 2020 Mar 1 Balance 21 300 Mar 31 Sundry Accounts 124 825 146 125 Balance 2.3 2020 Mar 31 Sundry Accounts 62 925 Balance 83 200 146 125 83 200 6 Prepare a Bank Reconciliation Statement for March 2020. Debit Balance as per bank statement Cr. Outstanding deposit Dr. Outstanding EFT No 9 Dr amount wrongly credited Dr. Balance according to the bank account Credit 85 800 18 000 2 000 18 600 83 200 See 1.2. 103 800 103 800 both figures must be the same 7 Copyright reserved Please turn over 3 Bank Reconciliations 2021 DBE QUESTION 3 3.1 CASH RECEIPTS JOURNAL - JANUARY 2021 Doc Day Details Bank Amount 31 Total 31 580 13 650 B/S T. Rogers 4 500 4 500 B/S BB 21 000 20 000 Investments 1 000 B/S B/S C. Charlie Big Bank CRJ 4 Details Rent Income Fixed Deposit: BB Investments Interest on fixed deposit 2 500 Debtors’ Control 340 Interest 2 500 340 59 920 CASH PAYMENTS JOURNAL - JANUARY 2021 CPJ 4 Doc Day Details Bank Amount Details 31 Total 23 349 10 399 B/S Big Bank 525 525 Bank charges B/S ST Insurance 2 340 2 340 Insurance B/S Nala 4 660 3 000 Water and electricity 1 660 Drawings 30 874 3.2 12 10 GENERAL LEDGER - CD STORES Bank 2021 Jan 1 Jan 31 Balance 25 210 Sundry accounts 59 920 85 130 Balance Copyright reserved 54 256 2021 Jan 31 Sundry accounts 30 874 Balance 54 256 85 130 6 Please turn over 4 Bank Reconciliations 3.3 2021 DBE Bank Reconciliation Statement for CD Stores on 31 January 2021. Debit Credit Balance according to bank balancing statement 56 266 figure Credit outstanding deposit 4 600 Debit outstanding EFT Nr 18 3 550 Debit amount wrongly credited 3 700 Credit interest wrongly debited 640 Debit balance according to bank 54 256 See 1.2. account 61 506 61 506 both figures must be the same Copyright reserved 8 Please turn over 5 Bank Reconciliations 2021 DBE QUESTION 4 4.1 CASH RECEIPT JOURNAL - MARCH 2020 CRJ 3 Doc Day Details Bank Amount Details 30 Total 66 000 66 000 B/S D. Dawie 9 600 9 600 Rent income B/S K. Nokanda 6 700 6 700 Debtors Control B/S HL Bank 85 85 Interest income 82 385 10 82 385 CASH PAYMENT JOURNAL - MARCH 2020 CPJ 3 Doc Day Details Bank Amount Details 30 Total 58 500 58 500 B/S Town Council 4 890 4 890 Water and electricity B/S Best Insurers 5 300 5 300 Insurance B/S ABBA Bank 4 500 4 500 Loan B/S HL Bank 711 711 Bank charges 73 901 4.2 73 901 13 GENERAL LEDGER OF JENNY STORES Bank 2020 Mar 1 Balance 11 300 Mar 31 Sundry Accounts 82 385 2020 Mar 31 Sundry Accounts 73 901 Balance 19 784 93 685 Balance 93 685 19 784 6 4.3 Prepare a Bank Reconciliation Statement for March 2020. Debit Balance according to bank statement balancing figure Cr. Outstanding deposit Dr. Outstanding EFT – 222 – 223 Cr amount wrongly debited Dr. Balance according to the bank account Credit 2 645 21 700 7 220 2 896 5 555 19 784 See 4.2 29 900 29 900 both figures must be the same 8 Copyright reserved Please turn over 6 Bank Reconciliations 2021 DBE QUESTION 5 5.1 CASH RECEIPT JOURNAL - MARCH 2021 CRJ 3 Doc Day Details Bank Amount Details 31 Total 46 200 46 200 BS 31 AG Investments 10 200 9 000 1 200 BS 31 P.Jacobs 4 500 4 500 60 900 82 385 Investment: AG Investments Interest on investment Debtors control 9 CASH PAYMENT JOURNAL - MARCH 2021 CPJ 3 Doc Day Details Bank Amount Details 31 Total 74 300 74 300 BS BS 31 31 Nala Municipality Virseker 1 500 6 000 EFT BS 31 31 Naude Enterprises BR Bank 9 600 610 1 500 4 500 1 500 9 600 490 120 92 010 5.2 Water and electricity Insurance Drawings Rent expenses Bank charges Interest on overdraft 15 92 010 GENERAL LEDGER OF JENNY STORES Bank 2021 Mar 31 Total receipts Balance 60 900 2021 Mar 1 Balance 15 200 46 310 2021 Mar 31 Total payments 92 010 107 210 107 210 2021 Apr 1 5.3 Balance 46 310 6 Bank Reconciliation Statement on 31 March 2021. Debit Balance according to bank statement balancing figure Cr. Outstanding deposit Dr. Outstanding EFT – 120 – 125 Dr. amount wrongly credited Cr. Balance according to the bank account 47 700 Credit 23 400 9 220 4 790 8 000 46 310 See 5.2 69 710 69 710 both figures must be the same 7 Copyright reserved Please turn over 7 Bank Reconciliations 2021 DBE QUESTION 6 6.1 CONCEPTS 6.1.1 6.1.2 6.1.3 ✓ ✓ ✓ True False True 3 6.2.1 CASH RECEIPT JOURNAL - MARCH 2020 Doc Day 30 B/S B/S B/S Details Total W. Western B. Bennie WW Bank CRJ 3 Bank Amount Details 49 000 49 000 8 300 8 300 Rent income 2 750 2 750 Debtors Control 232 232 Interest income 60 282 60 282 CASH PAYMENT JOURNAL - MARCH 2020 CPJ 3 Doc Day Details Bank Amount Details 30 Total 48 000 48 000 Sales 5 000 5 000 Sales B/S BB Traders 5 900 5 900 Creditors Control B/S Town Council 3 200 3 200 Water and electricity B/S WW Bank 1 112 1 112 Bank charges B/S Boabab 5 100 Insurance Insurers 6 600 1 500 Drawings 69 812 6.2.2 10 19 69 812 GENERAL LEDGER OF MARIAAN STORES Bank 2020 Mar 1 Balance 11 400 Mar 31 Sundry Accounts 60 282 71 682 Balance Copyright reserved 1 870 2020 Mar 31 Sundry Accounts Balance 69 812 1 870 71 682 6 Please turn over 8 Bank Reconciliations 2021 DBE 6.2.3 Prepare a Bank Reconciliation Statement for March 2020. Debit Balance according to bank statement balancing figure Cr. Outstanding deposit Dr. Outstanding EFT Dr amount wrongly credited Dr. Balance according to the bank account Credit 10 070 17 400 6 600 19 000 1 870 See 6.2.2 27 470 27 470 7 both figures must be the same QUESTION 7 7.1 CONCEPTS 7.1.1 7.1.2 7.1.3 False False True ✓ ✓ ✓ 3 7.2.1 CASH RECEIPT JOURNAL - February 2021 Doc Day 28 B/S B/S B/S Details Total L. Lopez L. Canizares MW Bank Bank Amount 52 000 52 000 7 100 7 100 2 750 2 750 230 230 62 080 CRJ 2 Details Rent income Debtors Control Interest income 10 62 080 CASH PAYMENT JOURNAL - February 2021 CPJ 2 Doc Day Details Bank Amount Details 28 Total 51 000 51 000 Commission 6 000 6 000 Commission income B/S Benzema 6 200 6 200 Creditors Control Traders B/S Municipality 2 800 2 800 Rates and Taxes B/S MW Bank 1 280 1 280 Bank charges B/S Hazard 5 700 Insurance Insurers 8 000 2 300 Drawings 75 280 Copyright reserved 75 280 19 Please turn over 9 Bank Reconciliations 7.2.2 2021 DBE GENERAL LEDGER OF Real Madrid STORES Bank 2021 Feb 1 Balance 13 600 Feb 28 Sundry Accounts 62 080 2021 Feb 28 Sundry Accounts 75 280 Balance 400 75 680 2021 March 1 Balance 75 680 400 6 7.2.3 Prepare a Bank Reconciliation Statement for February 2021. Debit Balance according to bank statement balancing figure Cr. Outstanding deposit Dr. Outstanding EFT 111 Dr amount wrongly credited Dr. Balance according to the bank account Credit 10 700 18 500 10 000 18 800 400 See 7.2.2 29 200 29 200 both figures must be the same Copyright reserved 7 Please turn over 10 Bank Reconciliations 2021 DBE QUESTION 8 8.1 CASH RECEIPT JOURNAL - APRIL 2020 CRJ 3 Doc Day Details Bank Amount Details 30 Total 53 000 53 000 B/S K. Marais 4 900 4 900 Debtors Control D. Dawie 9 600 9 600 Rent income 67 500 7 67 500 CASH PAYMENT JOURNAL - APRIL 2020 CPJ 3 Doc Day Details Bank Amount Details 30 Total 64 000 64 000 Sales 15 000 15 000 Sales B/S Town Council 4 890 4 890 Water and electricity B/S Easy Insurers 7 000 5 300 Insurance 1 700 Drawings B/S ABBA Bank 3 500 3 500 Loan B/S WW Bank 672 549 Bank charges 123 Interest on overdraft 95 062 8.2 21 95 062 GENERAL LEDGER OF KETSI STORES Bank 2020 Apr 30 Sundry Accounts 67 500 2020 Apr 1 Balance 29 907 Apr 30 Balance Sundry Accounts 97 407 95 062 97 407 Balance 8.3 2 345 29 907 6 Bank Reconciliation Statement on 30 April 2020. Debit Dr. Balance according to bank statement balancing figure Cr. Outstanding deposit Dr amount wrongly credited Cr EFT Wrongly debited Dr. Outstanding EFT – 564 Cr. Balance according to the bank account Credit 27 585 12 600 13 600 3 333 4 655 29 907 see 8.2 45 840 45 840 both figures must be the same 9 Copyright reserved Please turn over 11 Bank Reconciliations 2021 DBE QUESTION 9 CASH RECEIPT JOURNAL - JUNE 2020 9.1 Doc Day 30 Details Total B/S P. Nel Rand Bank N. Botha CRJ 6 Bank Amount Details 56 200 56 200 11 600 11 600 Rent income 4 800 4 800 Telephone 3 400 3 400 Debtors Control 76 000 10 76 000 CASH PAYMENT JOURNAL - JUNE 2020 CPJ 6 Doc Day Details Bank Amount Details 30 B/S B/S Total Service fees Pro Insurers Matjhabeng B/S B/S YEN Bank Rand Bank 9.2 67 400 1 500 5 890 6 000 67 400 1 500 5 890 4 500 1 500 5 300 5 300 910 593 317 87 000 87 000 Fee income Insurance Rates and taxes Drawings Loan Bank charges Interest on overdraft 21 GENERAL LEDGER OF HILTON TRADERS Bank 2020 Jun 30 Sundry Accounts 76 000 2020 Jun 1 Balance Balance 14 456 Jun 30 Sundry Accounts 90 456 87 000 90 456 Balance 9.3 3 456 14 456 6 Bank Reconciliation Statement on 30 June 2020. Debit Dr. Balance according to bank statement Cr. Outstanding deposit Dr amount wrongly credited Cr Debit orders wrongly debited Dr. Outstanding EFT – 654 Cr. Balance according to the bank account balancing Credit figure 12 645 17 800 16 300 2 244 5 555 14 456 See 9.2 34 500 34 500 both figures must be the same 9 Copyright reserved Please turn over 12 Bank Reconciliations 9.4 2021 DBE Provide TWO suggestions that the business can use to prevent a situation like the one experience on 26 May 2020 in the future. Any exceptable answers 9.5 • All bank notes received must first be scanned under an UV light to detect counterfeit money, to ensure it is not excepted. • Encourage customers to make card / electronic payments. ` 4 Identify the problem that is revealed by the previous reconciliation, and list TWO internal control measures to solve this problem. PROBLEM: Late deposits / not depositing money on time / keeping cash for a long period is risky. TWO CONTROL MEASURES • Division of duties – ensure that the person receiving cash is not the one depositing cash • Supervise deposits – authorised person to check and sign deposit slips • Arrange with bank for notifications for all transactions (sms) 5 9.6 Refer to the debit order for R2 244. Explain a possible reason how this may have occured, and provide advise on how this can be rectified. POSSIBLE EXPLANATION: Fraudulent entry; someone hacked the business security code; business entered the wrong account number for a service provider. POINT OF ADVICE Cancel the debit order with the incorrect business / person receiving the funds If that cannot be done, it may be necessary to change the business banking details Or change the security code Closely monitor the statement / statement or transaction records can be easily accessed at regular intervals; to detect unusual entries. 4 Copyright reserved Please turn over 13 Bank Reconciliations 2021 DBE QUESTION 10 10.1 CASH RECEIPTS JOURNAL - FEBRUARY 2020 CRJ 1 Doc Day Details Bank Amount Details 29 Total 64 811 64 811 B/S SPY Bank 54 000 52 000 Fixed deposit: SPY Bank 2 000 Interest on fixed deposit B/S S Bester 18 200 18 200 Rent income B/S PA Bank 108 108 Interest on current account 137 119 137 119 CASH PAYMENTS JOURNAL - FEBRUARY 2020 Doc Day Details Bank Amount 29 Total 53 991 53 991 Sales 62 420 62 420 B/S PA Bank 890 890 B/S ML Insurers 8 400 6 200 2 200 B/S CM Bank 4 300 4 300 B/S City council 56 230 56 230 186 231 10.2 12 CPJ 1 Details Sales Bank charges Insurance Drawings Loan: CM Bank Water and electricity 19 186 231 GENERAL LEDGER OF VDM TRADERS Bank 2020 Feb 1 Balance 474 188 2020 Feb 29 Sundry accounts 137 119 611 307 2020 Mar 1 Balance Copyright reserved 425 076 2020 Feb 29 Sundry accounts 186 231 Balance 425 076 611 307 6 Please turn over 14 Bank Reconciliations 10.3 2021 DBE Bank Reconciliation Statement op 29 February 2020. Debit Credit Cr. Balance as per Bank Statement 392 650 Cr. Outstanding deposit 25/02 13 820 28/02 22 336 Cr EFT wrongly debited 2 631 Dr. Outstanding EFT – No. 323 6 361 Dr. Balance according to bank 425 076 See 10.2 account 431 437 431 437 Both figures must be the same 8 Copyright reserved Please turn over 15 Bank Reconciliations 2021 DBE QUESTION 11 11.1 Calculate the correct Bank Account balance on 31 March 2020. Receipts: Payments: 55 400 + 900 + 2 850 + 9 300 + 120 36 900 + 6 000 + 1 450 + 5 350 + 980 = 68 570 = 50 680 16 7 500 + 68 570 – 50 680 = 25 270 11.2 Bank Reconciliation Statement on 31 March 2020. Debit Balance according to Bank Statement Balancing figure Cr Outstanding deposit Dr Outstanding EFT – 333 Dr amount wrongly credited Bank charges overstated Dr Balance on the bank account Credit 15 380 22 700 6 500 6 400 210 25 390 See 11.1 38 290 38 290 both figures must be the same 9 11.3 (a) Identify the GAAP principle which will be applied in this case. GAAP Principle: Principle of prudence 1 (b) Provide TWO internal control measures that Jane can use to prevent such a loss in future. Any TWO valid point • • • • • • • Division of duties/Rotation of duties/Divide duties amongst employees so that the one can act as a check on the other / The person issuing receipts should not be the same person doing the deposits. Responsible staff members to check/make the deposits. Regular and timely supervision / monitor cash deposits Cash must be deposited daily (check deposit slip against receipts). Outstanding deposits must be investigated promptly. Encourage EFT payments by customers / debtors. Request bank to send confirmation of all transactions (e.g. sms). Copyright reserved 4 Please turn over