1
Bank Reconciliations
2023
DBE
QUESTION 1: BANK RECONCILIATIONS
BANK RECONCILIATION
The following information relates to Montso Stores for March 2020.
REQUIRED:
1.1
Update the Cash Journals for March 2020 by taking into account entries on the
bank statement. Start with the provisional totals in B .
(17)
1.2
Prepare the Bank Account on 31 March 2020.
(7)
1.3
Prepare the Bank Reconciliation Statement for March 2020.
(5)
INFORMATION:
A.
The balance in the Bank Account in the General Ledger on 1 March 2020
was R12 340 (favourable)
B.
Cash Journals for March 2020 (before checking the bank statement)
CASH RECEIPT JOURNAL – MONTSO STORES – MARCH 2020
Doc
Rec 1
Crr 1
Crr 2
Crr 3
Crr 4
Day
Details
1
7
14
21
28
Montso
Cash
Cash
Cash
Cash
Analysis of
analyses
58 960
18 000
15 000
6 000
21 000
Bank
Sales
Cost of
sales
58 960
18 000
15 000
6 000
21 000
18 000
15 000
6 000
21 000
12 000
10 000
4 000
14 000
118 960
60 000
40 000
Amount
Details
58 960
Capital
58 960
CASH PAYMENT JOURNAL – MONTSO STORES – MARCH 2020
Doc
EFT1
EFT2
EFT3
EFT4
EFT5
EFT6
Day
1
2
8
17
21
30
Details
Bank
AA Stores
BB Traders
CC Stores
DD Suppliers
EE Stores
QQ Stores
10 000
2 500
5 000
7 000
3 500
12 400
40 400
C.
DETAILS
Balance
Cash deposit
EFT 1
EFT 2
Cash handling Fees
Cash deposit
EFT 3
Direct deposit – P..Piet
Cash deposit
EFT 4
Cash deposit
Debit order – Fast Insurers
EFT 5
Interest on credit balance
Service Fees
Debit order – Parys Municipality
EFT charges
Trading
stock
6 000
Stationery
2 700
2 300
Consumable stores
Amount
Details
4 000
2 500
7 000
Repairs
3 500
12 400
24 600
6 300
2 500
BANK STATEMENT – MONA BANK
DATE
AMOUNT
01/03/2020
02/03/2020
58 960
03/03/2020
10 000
04/03/2020
2 500
08/03/2020
25
09/03/2020
18 000
10/03/2020
5 000
11/03/2020
8 500
15/03/2020
15 000
22/03/2020
7 000
22/03/2020
6 000
20/03/2020
4 400
29/03/2020
3 500
28/03/2020
96
30/03/2020
180
31/03/2020
4 150
31/03/2020
225
7 000
BALANCE
12 340
+
–
–
–
+
–
+
+
–
+
–
–
+
–
–
81 916
+
Additional information:


The deposit of R8 500 on the 11 March was for rent income.
The debit order on 20 March was for the business insurance.
Copyright reserved
Please turn over
2
2023
Bank reconciliations

DBE
The debit order on 31 March to Parys Municipality is for water and electricity.
QUESTION 2: BANK RECONCILIATIONS
BANK RECONCILIATION
The following information relates to Daddy Stores for March 2020.
REQUIRED:
2.1
2.2
2.3
Update the Cash Journals for March 2020 by taking into account entries
on the bank statement. Start from the provisional totals given.
(20)
Prepare the Bank Account on 31 March 2020. Note that the Bank
account on 1 March 2020 reflected a debit balance of R21 300
(6)
Prepare the Bank Reconciliation Statement for March 2020.
(7)
INFORMATION:
A.
Cash Journals for March 2020
CASH RECEIPT JOURNAL – DADDY STORES – MARCH 2020
Doc
Rec 1
Crr 1
Crr 2
Crr 3
Crr 4
Day
Details
1
8
15
22
28
Daddy
Cash
Cash
Cash
Cash
Analysis of
analyses
50 000
21 000
15 000
12 000
18 000
Bank
Sales
Cost of
sales
50 000
21 000
15 000
12 000
18 000
21 000
15 000
12 000
18 000
14 000
10 000
8 000
12 000
116 000
66 000
44 000
Amount
Details
50 000
Capital
50 000
CASH PAYMENT JOURNAL – DADDY STORES – MARCH 2020
Doc
EFT1
EFT2
EFT3
EFT4
EFT5
EFT6
EFT7
EFT8
EFT9
Day
1
2
8
11
17
21
22
29
30
Details
AB Stores
Jim Traders
CC Stores
XX Traders
San Suppliers
LL Stores
WW Stores
Dan Traders
QQ Stores
Bank
11 000
2 500
3 600
4 800
5 200
1 900
3 600
20 100
2 000
54 700
B.
DETAILS
Balance
Cash deposit
EFT 1
EFT 2
Cash handling Fees
Cash deposit
EFT 3
Direct deposit - M. Mashiane
EFT 4
Cash deposit
EFT 5
Debit order – Quick Insurers
EFT 6
Cash deposit
EFT 7
Direct deposit – D. Dlamini
Interest on credit balance
EFT 8
Cash deposit
Service fees
Copyright reserved
Trading
stock
7 000
Stationery
2 500
4 000
1 100
1 900
1 900
Consumable stores
Amount
Details
4 000
2 000
500
Equipment
800
5 200
Repairs
3 600
20 100
2 000
15 500
27 100
6 400
5 700
BANK STATEMENT – DISA BANK
DATE
AMOUNT
02/03/2020
03/03/2020
04/03/2020
08/03/2020
09/03/2020
10/03/2020
11/03/2020
12/03/2020
15/03/2020
17/03/2020
20/03/2020
22/03/2020
22/03/2020
24/03/2020
25/03/2020
28/03/2020
29/03/2020
29/03/2022
30/03/2020
50 000
11 000
2 500
125
21 000
3 600
7 500
4 800
15 000
5 200
3 900
1 900
12 000
3 600
1 250
75
20 100
18 600
212
BALANCE
+
–
–
–
+
–
+
–
+
–
–
–
+
–
+
+
–
+
–
R 21 300
71 300
60 300
57 800
57 675
78 675
75 075
82 575
77 775
92 775
87 575
83 675
81 775
93 775
90 175
91 425
91 500
71 400
90 000
89 788
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
Please turn over
3
2023
Bank reconciliations
Debit order – Town Council
EFT charges
DBE
31/03/2020
31/03/2020
3 600
388
–
–
86 188
85 800
+
+
Additional information:





The deposit on the 11 March 2020 was the monthly rent.
The debit order on 20 March was the monthly insurance premium.
The direct deposit on 25 March was received from debtor D. Dlamini to settle
his account.
The direct deposit on 29 March was wrongly deposit into the business account.
The bank will rectify this on the next statement.
The debit order on 31 March to the Town Council was for water and electricity.
QUESTION 3
BANK RECONCILIATION
The information is from the records of CD Stores for January 2021.
REQUIRED:
3.1 Update the cash journals by comparing the journals to the bank
statement given. Start the journals with the totals provided.
(22)
3.2
Prepare the Bank Account on 31 January 2021.
(6)
3.3
Prepare the Bank Reconciliation Statement on 31 January 2021.
(8)
INFORMATION:
A. The balance of the bank account on 1 January 2021 – R25 210 (Dr.)
B. CASH RECEIPTS JOURNAL – CD STORES – JANUARY 2021
Doc
R 13
R 14
CRR 24
CRR 25
CRR 26
Day
3
12
18
25
30
Details
C. Janeke
P. Pretorius
Sales
Sales
Sales
Analysis
of
receipts
12 000
1 650
7 670
5 660
4 600
Bank
Sales
Cost of
sales
12 000
1 650
7 670
5 660
4 600
7 670
5 660
4 600
6 136
4 528
3 680
31 580
17 930
14 344
Amount
12 000
1 650
Details
Capital
Donation
13 650
CASH PAYMENTS JOURNAL – CD STORES – JANUARY 2021
Doc
Day
Details
Bank
Trading
stock
EFT 10
EFT 11
EFT 12
EFT 13
EFT 14
6
7
13
16
19
PNA
JJ Traders
JJ Traders
QQ Stores
Caltex
1 500
2 430
3 600
4 370
3 460
EFT 15
EFT 16
23
24
Overland
KS Traders
1 330
2 569
EFT 17
EFT 18
25
30
PNA
JJ Traders
540
3 550
3 550
23 349
9 580
Copyright reserved
Stationery
Consumable stores
Amount
Details
1 500
2 430
3 600
4 370
3 460
Equipment
Vehicle
expenses
2 569
Creditors’
Control
1 330
540
2 040
1 330
10 399
Please turn over
4
2023
Bank reconciliations
C.
DBE
Bank Statement for January 2021:
BIG BANK
DETAILS
Balance
Cash deposit
EFT 10
EFT 11
Cash handling fees
Cash deposit
EFT 12
Interest on overdraft
Direct deposit – T. Rogers
EFT 13
Cash deposit
EFT 14
Debit order – ST Insurance
Deposit – BB Investments
EFT 15
EFT 16
Direct deposit – C. Charlie
Interest on credit balance
EFT 17
Cash deposit
Service fees
Debit order – Nala Municipality
Direct deposit – student loan
EFT charges
DATE
01/01/2021
03/01/2021
06/01/2021
07/01/2021
09/01/2021
12/01/2021
13/01/2021
14/01/2021
15/01/2021
16/01/2021
18/01/2021
19/01/2021
20/01/2021
21/01/2021
23/01/2021
24/01/2021
24/01/2021
24/01/2021
25/01/2021
25/01/2021
26/01/2021
26/01/2021
26/01/2021
26/01/2021
DEBIT
CREDIT
BALANCE
25 210 CR
12 000
1 500
2 430
200
1 650
3 600
640
4 500
4 370
7 670
3 460
2 340
21 000
1 330
2 569
2 500
340
540
5 660
75
4 660
3 700
250
?
B. Additional information:
 The bank has incorrectly debited the business account with interest, on the
14 January. They will rectify this error on the next statement.
 The direct deposit on 15 January was from the tenant T. Rogers.
 The debit order on 20 January is the monthly insurance premium.
 The deposit on 21 January was a fixed deposit of R20 000 that matured.
 The direct deposit on 24 January for R2 500 was from debtor C. Charlie in
settlement of his account of R2 650.
 The direct deposit on 26 January for R3 700 was wrongly credited to the
business account. The bank will correct this on the next statement.
 The debit order to Nala Municipilaty was for water and electricity. R3 000
was for the business and the balance is for the owner’s private quarters on
the property.
C. The bank statement reflects transactions up to the 26 January 2021.
D. The balance of the bank statement is the balancing figure.
Copyright reserved
Please turn over
5
2023
Bank reconciliations
DBE
QUESTION 4: BANK RECONCILIATIONS
The following information relates to Jenny Stores for March 2020.
REQUIRED:
4.1
Complete the Cash Receipt Journal and Cash Payment Journal for
March 2020.
(23)
4.2
Prepare the Bank Account on 31 March 2020.
(6)
4.3
Prepare the Bank Reconciliation Statement for March 2020.
(7)
INFORMATION:
A.
On 1 March 2020, the Bank Account in the General Ledger reflected a
debit balance of R11 300.
B.
Provisional totals from the Cash Journals on 31 March 2020:
 Cash Receipt Journal, R66 000
 Cash Payment Journals, R58 500
C.
The following information on the March 2020 Bank Statement received
from HL Bank did not appear in the March 2020 Cash Journals:








D.
Town Council
R4 890 Water and electricity
Best Insurers
R5 300 Insurance
ABBA Bank
R4 500 Repayment of loan
EFT Fees, R145
Cash handling fee, R122
Service Fees, R444
Interest on favourable balance, R85
A deposit from debtor K. Nokanda for R6 700 in settlement of his
account.
An EFT for R5 555 was reflected on the business Bank Statement.
This payment does not relate to the business and must be
corrected by the bank.
The following information in the March 2020 Cash Journals did not
appear on the Bank Statement for March 2020:



E.
A deposit from D. Dawie, R9 600 for his monthly rent.
Debit orders:
Outstanding deposit, R21 700
EFT 222 for R7 220 to DD Traders for trading stock purchased.
EFT 223 for R2 896 to CC Stores for stationery purchased.
Balance according to the Bank Statement on 31 March 2020 is R?.
Copyright reserved
Please turn over
6
2023
Bank reconciliations
DBE
QUESTION 5: BANK RECONCILIATIONS
The following information relates to Dawie Traders for March 2021.
REQUIRED:
5.1
Complete the Cash Receipt Journal and Cash Payment Journal for
March 2021.
(24)
5.2
Prepare the Bank Account on 31 March 2021.
(6)
5.3
Prepare the Bank Reconciliation Statement for March 2021.
(7)
INFORMATION:
A.
On 1 March 2021, the Bank Account in the General Ledger reflected
an unfavourable balance of R15 200.
B.
Provisional totals from the Cash Journals on 31 March 2021:
 Cash Receipt Journal, R46 200
 Cash Payment Journals, R74 300
C.
The following information on the March 2021 Bank Statement received
from BR Bank did not appear in the March 2021 Cash Journals:

Debit orders:
Nala Municipality
Virseker
AG Investments







Copyright reserved
R1 500 Water and electricity
R6 000 Insurance premium; R1 500 is
for the private residence of the
owner.
R10 200 Investment that matured,
including interest for the year
at 13⅓ %.
EFT Fees, R160
Cash handling fee, R80
Service Fees, R250
Interest on unfavourable balance, R120
A deposit from debtor P. Jacobs for R4 500 in settlement of his
account.
The bookkeeper forgot to enter the EFT to Naude Enterprises,
R9 600 for the monthly rent
A deposit of R8 000 was reflected on the business Bank Statement.
This deposit does not relate to the business and must be corrected
by the bank.
Please turn over
7
2023
Bank reconciliations
D.
The following information in the March 2021 Cash Journals did not
appear on the Bank Statement for March 2021:



E.
DBE
Outstanding deposit, R23 400
EFT 120 for R9 220 to GF Stores for consumables purchased.
EFT 125 for R4 790 to AR Traders for stationery purchased.
Balance according to the Bank Statement on 31 March 2021 is R?.
QUESTION 6: BANK RECONCILIATIONS
6.1
6.2
State whether the following statements true or false is. Write only true or false
next to the question number.
6.1.1
Bank charges is a form of EFT.
6.1.2
A debit balance on the bank statement is a positive balance.
6.1.3
Interest credited on the bank statement is recorded in the Cash
Receipts Journal.
(3)
BANK RECONCILIATION
The following information relates to Mariaan Stores for March 2020.
REQUIRED:
6.2.1
Complete the Cash Receipt Journal and Cash Payment Journal for
March 2020.
(29)
6.2.2
Prepare the Bank Account on 31 March 2020.
(6)
6.2.3
Prepare the Bank Reconciliation Statement on 31 March 2020.
(7)
INFORMATION:
A.
Extract from the Bank Reconciliation statement on 29 February 2020:
Outstanding deposits: 18 February 2020
28 February 2020
Outstanding EFT:
No. 123
Favourable balance as per Bank account
R 15 900
23 000
5 700
11 400
NOTE:

The outstanding deposit of R15 900 appeared on the March 2020
bank statement.
Copyright reserved
Please turn over
Bank reconciliations
8
2023
DBE

The outstanding deposit of R23 000 on the Bank Reconciliation
Statement was in respect of sales. It was reflected as R18 000 in
the March Bank statement. After an investigation, it was decided to
write-off the missing R5 000.

EFT 123 appeared on the Bank Statement for March 2020.
B.
Provisional totals from the Cash Journals on 31 March 2020:
 Cash Receipt Journal, R49 000
 Cash Payment Journals, R48 000
C.
The following information on the March 2020 Bank Statement did not
appear in the March 2020 Cash Journals:
EXTRACT: BANK STATEMENT – WW BANK
DETAILS
Debit order Town Council - Water and electricity
Cash handling Fees
EFT costs
Deposit: W. Western: Rent
Direct deposit: Loan repayment
EFT – payment BB Traders
B. Bennie
Service fees
Interest on a positive current account balance
Boabab Insurers
AMOUNT
R3 200
444
113
8 300
19 000
5 900
2 750
555
232
6 600
D.
Additional information
 W. Western made a direct deposited for his monthly rent.
 The EFT for R5 900 to creditor BB Traders was omitted in the
journals, in error.
 A deposit of R19 000 reflected on the business Bank Statement,
is a bank error. They will rectify this on the next statement
 A deposit from debtor B. Bennie was a part payment of his
account.
 The debit order to Boabab Insurers includes R1 500 for the
owner’s private vehicle.
E.
The following information in the March 2020 Cash Journals did not
appear on the Bank Statement for March 2020:


Copyright reserved
Outstanding deposit, R17 400
EFT 222 for R6 600 to XY Stores for trading stock purchased.
Please turn over
9
2023
Bank reconciliations
DBE
QUESTION 7: BANK RECONCILIATIONS
7.1
7.2
State whether the following statements are true or false. Write only TRUE or
FALSE next to the question number.
7.1.1
Costs charged in respect of EFT’s do not form part of Bank charges.
7.1.2
A credit balance on the bank statement reflects a positive balance.
7.1.3
Interest debited on the bank statement will be recorded in the Cash
Receipts Journal.
(3)
BANK RECONCILIATION
The following information relates to Real Madrid Stores for February 2021.
REQUIRED:
7.2.1
Complete the Cash Receipt Journal and Cash Payment Journal for
February 2021.
(29)
7.2.2
Prepare the Bank Account on 28 February 2021.
(6)
7.2.3
Prepare the Bank Reconciliation Statement for February 2021.
(7)
INFORMATION:
A.
Extract from the Bank Reconciliation statement on 31 January 2021:
Outstanding deposits: 10 January 2021
28 January 2021
Outstanding EFT:
No. 100
Favourable balance as per Bank account
R 11 800
26 000
3 900
13 600
NOTE:

The outstanding deposit of R11 800 appeared on the February
2021 bank statement.
B.

The outstanding deposit of R26 000 on the Bank Reconciliation
Statement was in respect of fee income for services rendered. It
was reflected as R20 000 in the February Bank statement. After an
investigation, it was decided to write-off the missing R6 000.

EFT 100 appeared on the Bank Statement for February 2021.
Provisional totals from the Cash Journals on 28 February 2021:
 Cash Receipt Journal, R52 000
 Cash Payment Journals, R51 000
Copyright reserved
Please turn over
10
2023
Bank reconciliations
C.
The following information on the February 2021 Bank Statement did
not appear in the February 2021 Cash Journals:
EXTRACT: BANK STATEMENT – MW BANK
DETAILS
Debit order Municipality – Rates and Taxes
Cash handling Fees
Deposit: Services
Deposit: L. Lopez
EFT Charges
EFT – payment Benzema Traders
L. Canizares
Service fees
Interest on a positive current account balance
Hazard Insurers
D.
AMOUNT
R2 800
545
18 800
7 100
115
6 200
2 750
620
230
8 000
Additional information





E.
DBE
An EFT payment to Benzema Traders in settlement of our
account of R6 200, was not recorded.
The debit order to Hazard Insurers includes R2 300 for the
insurance of the owner’s private resident.
A direct deposit of R18 800 was wrongly reflected on the Bank
Statement of the business. The bank will rectify the error.
The direct deposit from L. Canizares was a partial payment of
his account. A discount of R250 was allowed
The deposit from L. Lopez. Is for the monthly rent.
The following information in the February 2021 Cash Journals did not
appear on the Bank Statement for February 2021:


Copyright reserved
Outstanding deposit, R18 500
EFT 111 for R10 000 to Ramos Stores for equipment purchased.
Please turn over
11
2023
Bank reconciliations
DBE
QUESTION 8: BANK RECONCILIATIONS
The following information relates to Ketsi Traders for April 2020.
REQUIRED:
8.1
Complete the Cash Journals for April 2020.
(28)
8.2
Prepare the Bank Account on 30 April 2020.
(6)
8.3
Prepare the Bank Reconciliation Statement for April 2020.
(9)
INFORMATION:
A.
Extract from the Bank Reconciliation statement on 31 March 2020
Outstanding deposits: 19 March 2020
25 March 2020
Outstanding EFT: No. 144
Unfavourable balance as per Bank account
R 23 600
15 000
15 700
2 345
Refer to the extract above:

The outstanding deposit of R23 600 appeared on the April 2020
bank statement.
The outstanding deposit of R15 000 in respect of sales, did not
appear on the April 2020 Bank Statement. It was decided to writeoff this amount, as the money would not be recovered.
EFT 144 appeared on the Bank Statement for April 2020.


B.
Provisional totals from the Cash Journals on 30 April 2020:
 Cash Receipt Journal,
R53 000
 Cash Payment Journals, R64 000
C.
The following information on the April 2020 Bank Statement from
HL Bank did not appear in the April 2020 Cash Journals:
 Debit orders:
Town Council
Easy Insurers
ABBA Bank




Copyright reserved
R4 890 Water and electricity
R7 000 R5 300 is for the business
vehicles and the balance is for
the owner’s car
R3 500 Repayment of loan
EFT Fees, R211
Cash handling fee, R99
Service Fees, R239
Interest on bank overdraft, R123
Please turn over
12
2023
Bank reconciliations




E.
DBE
A deposit from K. Marais for R4 900 for settlement of his account.
A deposit from D. Dawie for R9 600 for his monthly rent.
EFT 111 (payment) for R3 333, reflected on the bank statement,
was not a transaction of the business. The bank will rectify the
error.
Another bank error of R13 600 was reflected as a cash deposit
on the statement. The bank will rectify the error.
The following information in the April 2020 Cash Journals did not
appear on the Bank Statement for April 2020:


Outstanding deposit, R12 600
EFT 564 for R4 655 to BB Suppliers for stationery purchased.
QUESTION 9: BANK RECONCILIATIONS
The information was extracted from the records of Hilton Traders for June 2020.
REQUIRED:
9.1
Complete the Cash Journals for June 2020.
(31)
9.2
Prepare the Bank Account on 30 June 2020.
(6)
9.3
Prepare the Bank Reconciliation Statement on 30 June 2020.
(9)
9.4
Provide TWO suggestions that the business can use to prevent a situation
like the one experience on 26 May 2020 in the future.
(4)
Identify the problem that is revealed by the previous reconciliation, and list
TWO internal control measures to solve this problem.
(5)
Refer to the debit order for R2 244. Provide a possible explanation how this
may have occured, and provide advise on how this can be rectified.
(4)
9.5
9.6
INFORMATION:
A.
Extract from the Bank Reconciliation statement on 31 May 2020:
Outstanding deposits: 17 May 2020
26 May 2020
Outstanding EFT: No. 123
Unfavourable balance as per bank account
Copyright reserved
R32 100
7 300
17 600
3 456
Please turn over
13
2023
Bank reconciliations
DBE
NOTE:

The outstanding deposit of R32 100 appeared on the June 2020
bank statement.

The outstanding deposit on the 26 May 2020 was reflected as
R5 700 on the April statement. Upon enquiry, the bank
confirmed that it was because of counterfeit notes included in the
total deposit. This was cash received for repair services
rendered. It was decided to write-off this difference.
EFT 123 appeared on the Bank Statement for June 2020.
B.
Provisional totals from the Cash Journals on 30 June 2020:
 Cash Receipt Journal,
R56 200
 Cash Payment Journal,
R67 400
C.
The following information on the June 2020 Bank Statement from
XXZ Bank did not appear in the June 2020 Cash Journals:
 Debit orders:
Pro Insurers
Matjhabeng
Metro
YEN Bank
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E.
R5 890 Monthly insurance premium
R6 000 R4 500 is for the business’ rates
and taxes and the balance is for the
owner’s private property.
R5 300 Monthly repayment of loan
EFT Fees, R189
Cash handling fee, R112
Service Fees, R292
Interest on bank overdraft, R317
A deposit from P. Nel, R11 600 for his monthly rent.
A debit order for R2 244 appeared on the business bank
statement, on 29 April 2020. This was not an account of the
business and fortunately, the owner was able to instruct the bank
to cancel this entry. This reversal will be reflected on the next
statement.
A direct deposit of R16 300 was wrongly reflected on the business
Bank Statement. The bank will rectify the error.
A deposit from N. Botha for R3 400 in settlement of his account
of R3 500.
The following information in the June 2020 Cash Journals did not
appear on the Bank Statement for June 2020:
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Outstanding deposit, R17 800
EFT 654 for R5 555 to BP Suppliers for sanitizing supplies
purchased.
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Bank reconciliations
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QUESTION 10
The following information relates to VDM Handelaars for February 2020.
REQUIRED:
10.1 Complete the Cash Journals for February 2020.
(31)
10.2 Prepare the Bank Account on 29 February 2020.
(6)
10.3 Prepare the Bank Reconciliation Statement for February 2020.
(8)
INFORMATION:
A.
Extract from the Bank Reconciliation Statement on 31 January
2020:
Outstanding deposits:
21 January 2020
30 January 2020
Outstanding EFT: No. 121
No. 142
Favourable balance as per Bank account
R62 420
24 210
9 432
16 222
474 188
Note:
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The outstanding deposit of R62 420 on the Bank Reconciliation
Statement was in respect of sales. It did not appear on the Bank
Statement for February. An investigation revealed that the
bookkeeper never deposited the money. He used the money to
pay for his daughters hospital costs. The bookkeeper resigned
and cannot be found. It was decided to write-off this amount.
The outstanding deposit of R24 210 appeared on the Bank
Statement for February 2020.
EFTs 121 and 142 appeared on the bank statement
B.
Provisional totals from the Cash Journals on 29 February 2020:
 Cash Receipts Journal, R64 811
 Cash Payments Journal, R53 991
C.
The following information on the February 2020 Bank Statement from
PA Bank did not appear in the February Cash Journals:
 A deposit of R54 000 from PX Bank being a fixed deposit of
R52 000 that matured, together with the interest.
 A deposit of R18 200 from S. Bester for her mothly rent.
 EFT Fees, R543
 Cash handling fees, R94
 Service fees, R253
 Interest credited to the bank account, R108
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Bank reconciliations
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Debit orders:
ML Insurers
CM Bank
City Council
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E.
DBE
R8 400 R6 200 is for the business vehicles,
and the balance is for the owner’s
vehicle.
R4 300 Instalment on loan
R56 230 Water and electricity
EFT 211 for R2 631 in favour of Choppie Motors was recorded in
the CPJ. The bank however, debited this EFT twice on the bank
statement. This will be rectified on the next statement.
The following information in the February 2020 Cash Journals did not
appear on the Bank Statment for February 2020:
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EFT 323 for R6 361 paid to Q’s for equipment purchased.
Outstanding deposit on 25 February 2020, R13 820
Outstanding deposit on 28 February 2020, R?
The Bank Statement showed a credit balance of R392 650 on
29 February 2020
QUESTION 11
The following information relates to Jane Stores for March 2020.
REQUIRED:
11.1
Calculate the correct Bank Account balance on 31 March 2020.
You may use the ledger format.
(16)
11.2
Prepare the Bank Reconciliation Statement on 31 March 2020.
(9)
11.3
An investigation revealed that the deposit of R6 000 was missing. Since this
amount could not be recovered, it was decided that it should be written off.
(a)
(b)
State the GAAP principle that applies to this decision
Provide TWO internal control measure that Jane can use to prevent
such a loss in future.
(1)
(4)
INFORMATION:
A.
Extract from the Bank Reconciliation statement on 29 February
2020:
Outstanding deposits: 26 February 2020
28 February 2020
Outstanding EFT: No. 134
Favourable balance as per bank account
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R17 300
14 000
7 600
7 500
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DBE
NOTE:
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The outstanding deposit of R17 300 appeared on the March
2020 bank statement.
B.
C.
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The outstanding deposit on 28 February 2020 appeared on the
bank statement but as R8 000. After investigation it came to light
that the bookkeeper disappeared with the money. It was decided
to write off this amount decided to write this amount off as it could
not be recovered.
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EFT 134 appeared on the Bank Statement for March 2020, with
the correct amount of R6 700.
Provisional totals from the Cash Journals on 31 March 2020:
 Cash Receipt Journal, R55 400
 Cash Payment Journals, R36 900
The following information on the March 2020 Bank Statement did
not appear in the March 2020 Cash Journals:
EXTRACT: BANK STATEMENT – ZZ BANK
DETAILS
Debit order: Town Council
EFT – payment DD Traders
Cash handling Fees
L. Andrews
Deposit: Fixed Deposit
EFT costs
L. Kabi
Service fees
Service fees
Interest on credit balance
AMOUNT
R1 450
5 350
330
2 850
6 400
440
9 300
210
210
120
Additional information
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D.
The bookkeeper forgot to enter the EFT to DD Traders in the
journal. This was made in settlement of our account of R6 800.
The direct deposit from debtor L. Andrews was an account
payment.
The deposit of R6 400 does not relate to the business. This
bank error will be rectified on the next statement.
The deposit by L. Kabi was the monthly rent income.
The bank informed the business that service fees was
duplicated on the statement, in error. This will be rectified on
the next statement.
The following information in the March 2020 Cash Journals did not
appear on the Bank Statement for March 2020:
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Outstanding deposit, R22 700
EFT 333 for R6 500 for a payment of a creditor, WW Stores.
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DBE
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