How often Cash journals, bank and reconciliation is asked

Where it was asked

• Oct/Nov 201320 marks
• May/Jun 201220 marks
• May/Jun 201144 marks

The questions

1. Oct/Nov 2013, Q4.18 marks

   The information below relates to Madison Traders. On 1 December 2012 the bank account in the general ledger reflected a favourable balance of R5 256, while on 31 December 2012 the bank statement reflected an unfavourable (overdrawn) balance of R1 296. At 31 December 2012 the subtotals of the cash payments journal (bank column) amounted to R78 870 and the subtotals of the cash receipts journal (bank column) amounted to R73 620. When the bank statement was compared to the cash journals on 31 December 2012, the following further information was obtained: three cheques had not yet been presented to the bank for payment, namely cheque no 110 dated 25/06/2012 for R1 110 made out to S Sherman (a creditor), cheque no 171 dated 17/12/2012 for R3 300 made out to Phone-up for the telephone account, and cheque no 193 dated 23/12/2012 for R2 250 made out to Travel Printers for stationery purchased; debits appearing on the bank statement but not yet recorded in the cash journals consisted of interest on overdraft of R96 and service fees of R135; a debtor, S Snikiwe, paid R1 800 directly into the bank account of Madison Traders, a transaction not yet recorded in the cash journals; a stop order of R975 for the monthly insurance premium payable to Forlife Insurance Company appeared on the bank statement but not in the relevant cash journal; the bank erroneously debited Madison Traders' account with a cheque of R4 350 drawn by another client of the bank; sales of R3 552 entered in the cash receipts journal on 31 December 2012 were only banked on 2 January 2012 and therefore did not appear on the December 2012 bank statement; and a cheque for R654 received on 15 December 2012 from a debtor, T Thompson, was returned by the bank on 29 December 2012 due to an error on the cheque. For Madison Traders, prepare the cash receipts journal and the cash payments journal (bank columns only) for 31 December 2012, taking into account all the reconciling items listed in the shared scenario (the unpresented cheques, bank debits not yet recorded, the direct deposit by debtor S Snikiwe, the stop order to Forlife Insurance Company, the bank's erroneous debit of R4 350, the late-banked sales of R3 552, and the returned cheque of R654 from T Thompson).

2. Oct/Nov 2013, Q4.25 marks

   The information below relates to Madison Traders. On 1 December 2012 the bank account in the general ledger reflected a favourable balance of R5 256, while on 31 December 2012 the bank statement reflected an unfavourable (overdrawn) balance of R1 296. At 31 December 2012 the subtotals of the cash payments journal (bank column) amounted to R78 870 and the subtotals of the cash receipts journal (bank column) amounted to R73 620. When the bank statement was compared to the cash journals on 31 December 2012, the following further information was obtained: three cheques had not yet been presented to the bank for payment, namely cheque no 110 dated 25/06/2012 for R1 110 made out to S Sherman (a creditor), cheque no 171 dated 17/12/2012 for R3 300 made out to Phone-up for the telephone account, and cheque no 193 dated 23/12/2012 for R2 250 made out to Travel Printers for stationery purchased; debits appearing on the bank statement but not yet recorded in the cash journals consisted of interest on overdraft of R96 and service fees of R135; a debtor, S Snikiwe, paid R1 800 directly into the bank account of Madison Traders, a transaction not yet recorded in the cash journals; a stop order of R975 for the monthly insurance premium payable to Forlife Insurance Company appeared on the bank statement but not in the relevant cash journal; the bank erroneously debited Madison Traders' account with a cheque of R4 350 drawn by another client of the bank; sales of R3 552 entered in the cash receipts journal on 31 December 2012 were only banked on 2 January 2012 and therefore did not appear on the December 2012 bank statement; and a cheque for R654 received on 15 December 2012 from a debtor, T Thompson, was returned by the bank on 29 December 2012 due to an error on the cheque. For Madison Traders, prepare the bank account for December 2012 in the general ledger, properly balanced, starting from the favourable balance of R5 256 on 1 December 2012 and incorporating the journal totals and reconciling items described in the scenario.

3. Oct/Nov 2013, Q4.37 marks

   The information below relates to Madison Traders. On 1 December 2012 the bank account in the general ledger reflected a favourable balance of R5 256, while on 31 December 2012 the bank statement reflected an unfavourable (overdrawn) balance of R1 296. At 31 December 2012 the subtotals of the cash payments journal (bank column) amounted to R78 870 and the subtotals of the cash receipts journal (bank column) amounted to R73 620. When the bank statement was compared to the cash journals on 31 December 2012, the following further information was obtained: three cheques had not yet been presented to the bank for payment, namely cheque no 110 dated 25/06/2012 for R1 110 made out to S Sherman (a creditor), cheque no 171 dated 17/12/2012 for R3 300 made out to Phone-up for the telephone account, and cheque no 193 dated 23/12/2012 for R2 250 made out to Travel Printers for stationery purchased; debits appearing on the bank statement but not yet recorded in the cash journals consisted of interest on overdraft of R96 and service fees of R135; a debtor, S Snikiwe, paid R1 800 directly into the bank account of Madison Traders, a transaction not yet recorded in the cash journals; a stop order of R975 for the monthly insurance premium payable to Forlife Insurance Company appeared on the bank statement but not in the relevant cash journal; the bank erroneously debited Madison Traders' account with a cheque of R4 350 drawn by another client of the bank; sales of R3 552 entered in the cash receipts journal on 31 December 2012 were only banked on 2 January 2012 and therefore did not appear on the December 2012 bank statement; and a cheque for R654 received on 15 December 2012 from a debtor, T Thompson, was returned by the bank on 29 December 2012 due to an error on the cheque. For Madison Traders, prepare the bank reconciliation statement as at 31 December 2012, reconciling the unfavourable bank statement balance of R1 296 with the corrected general ledger bank account balance, taking into account the unpresented cheques (no 110 for R1 110, no 171 for R3 300, and no 193 for R2 250) and the bank's erroneous debit of R4 350, as well as the late-banked deposit of R3 552.

4. May/Jun 2012, Q2.18 marks

   The information below relates to DC Traders. At 1 March 2012 the bank account in the general ledger reflected a favourable balance of R1 752, while at 31 March 2012 the bank statement showed an unfavourable balance of R432. At 31 March 2012 the cash receipts journal bank column subtotal was R24 480 and the cash payments journal bank column subtotal was R22 815. When the cash journals were compared with the March 2012 bank statement, the following came to light: a debtor, P Pinto, paid R600 directly into DC Traders' bank account; the bank erroneously debited DC Traders' account with a cheque of R1 450 drawn by another of the bank's clients; a cheque for R218 received on 17 March 2012 from debtor E Eysele was returned by the bank on 28 March 2012 because of an error on the cheque; the bank statement's debit side showed service fees of R45 and interest on the bank overdraft of R32, neither yet recorded in the cash journals; a debit order of R3 800 for the monthly office rent, payable to AP Office Ltd, appeared on the bank statement but had not yet been entered in the relevant cash journal; sales of R1 184 recorded in the cash receipts journal on 31 March 2012 were only banked on 4 April 2012; and three cheques had not yet been presented for payment to the bank - cheque no 218 dated 25 August 2011 to creditor BB Ltd for R430, cheque no 380 dated 17 March 2012 to Telecom for the telephone account of R1 100, and cheque no 394 dated 23 March 2012 to Rio Stationers for paper purchased, R750. Using the subtotals given (cash receipts journal bank column R24 480 and cash payments journal bank column R22 815) as the starting point, prepare the cash receipts journal and the cash payments journal of DC Traders for 31 March 2012, showing the bank columns only.

5. May/Jun 2012, Q2.25 marks

   The information below relates to DC Traders. At 1 March 2012 the bank account in the general ledger reflected a favourable balance of R1 752, while at 31 March 2012 the bank statement showed an unfavourable balance of R432. At 31 March 2012 the cash receipts journal bank column subtotal was R24 480 and the cash payments journal bank column subtotal was R22 815. When the cash journals were compared with the March 2012 bank statement, the following came to light: a debtor, P Pinto, paid R600 directly into DC Traders' bank account; the bank erroneously debited DC Traders' account with a cheque of R1 450 drawn by another of the bank's clients; a cheque for R218 received on 17 March 2012 from debtor E Eysele was returned by the bank on 28 March 2012 because of an error on the cheque; the bank statement's debit side showed service fees of R45 and interest on the bank overdraft of R32, neither yet recorded in the cash journals; a debit order of R3 800 for the monthly office rent, payable to AP Office Ltd, appeared on the bank statement but had not yet been entered in the relevant cash journal; sales of R1 184 recorded in the cash receipts journal on 31 March 2012 were only banked on 4 April 2012; and three cheques had not yet been presented for payment to the bank - cheque no 218 dated 25 August 2011 to creditor BB Ltd for R430, cheque no 380 dated 17 March 2012 to Telecom for the telephone account of R1 100, and cheque no 394 dated 23 March 2012 to Rio Stationers for paper purchased, R750. Prepare the bank account in the general ledger of DC Traders, properly balanced, as at 31 March 2012.