How often Bank reconciliation is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2015, Q1.1 (Part A)10 marks

   Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. PJ Stores, an entity that is not registered for VAT and applies the perpetual inventory system, entered into the following transactions during the week ended 6 March 2015: on the 2nd, the owner Mrs P Johnson increased her capital contribution from R50 000 to R70 000, and receipt number 228 was issued; on the 3rd, R3 500 was received from Mrs K Khumalo, a debtor of PJ Stores, as part settlement of her account, with receipt number 229 issued; on the 4th, an original credit purchases invoice was received from MG Wholesalers for R5 000 of inventory bought on credit; on the 5th, the account of debtor Mr T Peters, who owed PJ Stores R600, was written off as irrecoverable; and on the 6th, business cheque number 199 for R950 was issued to pay the secretary's wage for the week. You are required to prepare a table (using the format: Date | A = E + L) showing the effect of each of these transactions on the accounting equation, using a '+' sign for an increase and a '-' sign for a decrease, and assuming that where applicable the bank balance is positive.

2. May/Jun 2015, Q1.2(a) (Part B)4 marks

   Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. The following information was extracted from the accounting records of Household Appliances Services, whose inexperienced bookkeeper could not complete the bank reconciliation for the month ended 30 April 2015. The total of the bank column in the adjusted cash receipts journal, after comparing the bank statement with the cash receipts journal for April 2015, was R35 800, and the total of the bank column in the adjusted cash payments journal, after the same comparison, was R29 300. Additional information: (1) the bank account in the general ledger showed a favourable balance of R10 700 on 1 April 2015; (2) the bank statement showed a favourable closing balance of R21 700 at 30 April 2015; (3) after comparing the bank statement with the cash receipts and cash payments journals, further differences (apart from those already recorded in the cash journals) were found, namely: a direct deposit of R4 200 that did not belong to Household Appliances Services appeared on its bank statement; a deposit of R3 600 did not appear on the bank statement for April 2015; and cheque numbers 135 (for R1 400) and 141 (for R2 500) did not appear on the bank statement for April 2015. You are required to prepare the bank account in the general ledger of Household Appliances Services for April 2015 and balance the account.

3. May/Jun 2015, Q1.2(b) (Part B)6 marks

   Question 1 relates to FAC1501 (May/June 2015) and covers the accounting equation and bank reconciliation. It is divided into Part A and Part B, and candidates must answer both parts, starting the question on a new page. Using the same information about Household Appliances Services as in part (a) above (adjusted cash receipts journal bank total of R35 800 and adjusted cash payments journal bank total of R29 300 for April 2015; opening general ledger bank balance of R10 700 (favourable) on 1 April 2015; bank statement closing balance of R21 700 (favourable) at 30 April 2015; a direct deposit of R4 200 not belonging to the entity appearing on the bank statement; a deposit of R3 600 not yet appearing on the bank statement; and outstanding cheques number 135 for R1 400 and number 141 for R2 500), you are required to prepare the bank reconciliation statement of Household Appliances Services as at 30 April 2015.

4. Oct/Nov 2014, Q2 Part A14 marks

   This question is divided into Part A and Part B, and both parts must be answered, starting the whole question on a new page. Phatudi Boiler's general ledger reflects the following balances for the year ended 30 April 2014: sales R900 900; cost of sales R485 000; bank charges R1 378; interest expenses R948; rental income R30 000; wages and salaries R240 800; water and electricity R9 200; advertising R56 000; stationery R12 000; profit on sale of non-current assets R1 700; telephone expenses R26 000; drawings R14 000; vehicle at cost R198 000; petty cash R3 000; and trading inventory R67 000. You are required to prepare the profit or loss account for Phatudi Boiler for the year ended 30 April 2014, showing all your calculations.

5. Oct/Nov 2014, Q2.2(a) Part B4 marks

   This question is divided into Part A and Part B, and both parts must be answered, starting the whole question on a new page. Speech Lingo's bookkeeper is inexperienced with the bank reconciliation process and could not complete the accounting work. You are given the adjusted cash receipts journal (CRJ3) and cash payments journal (CPJ3) for March 2014, already compared against the bank statement. The cash receipts journal shows totals of R18 900 plus interest income of R2 500, giving R21 400. The cash payments journal shows totals of R21 200 plus bank charges of R675, interest on overdraft of R465, tracking services (debit order) of R1 200, and an R/D cheque from O L Dubai of R3 000, giving R26 540. Additional information: (1) the bank account in Speech Lingo's records showed a positive balance of R4 895 on 28 February 2014; (2) after comparing the bank statement with the cash journals, further differences were found besides those already recorded in the cash journals: (2.1) a direct deposit of R3 470 for Speed Services was incorrectly credited on Speech Lingo's bank statement; (2.2) a deposit of R4 550 did not appear on Speech Lingo's March 2014 bank statement; (2.3) cheque numbers 114 (R850), 121 (R1 125) and 123 (R560) did not appear in the debit column of the March 2014 bank statement; and (2.4) the bank statement reflected a credit closing balance of R1 210 as at 31 March 2014. Required: prepare the bank account in the general ledger of Speech Lingo for March 2014 and balance the account.

6. Oct/Nov 2014, Q2.2(b) Part B7 marks

   This question is divided into Part A and Part B, and both parts must be answered, starting the whole question on a new page. Using the same information about Speech Lingo given for the bank account (the adjusted CRJ3 total of R21 400 including interest income of R2 500, the adjusted CPJ3 total of R26 540 including bank charges of R675, interest on overdraft of R465, tracking services debit order of R1 200 and an R/D cheque from O L Dubai of R3 000; the opening favourable bank balance of R4 895 on 28 February 2014; a direct deposit of R3 470 for Speed Services incorrectly credited on the bank statement; an outstanding deposit of R4 550 not yet on the March 2014 bank statement; outstanding cheques number 114 for R850, number 121 for R1 125 and number 123 for R560; and a bank statement credit closing balance of R1 210 as at 31 March 2014), you are required to prepare the bank reconciliation statement of Speech Lingo as at 31 March 2014.

7. May/Jun 2014, Q2.16 marks

   Question 2 consists of two unrelated parts, Part A and Part B. Part A: Computer Traders provides the following information for its financial year ended 31 January 2014: inventory on 1 February 2013 was R50 700; sales amounted to R480 500; purchases amounted to R230 100; sales returns were R14 800; purchase returns were R5 600; carriage on sales was R20 300; carriage on purchases was R12 400; and customs and excise duties on purchases were R8 900. Computer Traders applies a periodic inventory system, and a physical inventory count performed on 31 January 2014 revealed inventory on hand valued at R40 200. Calculate the cost of sales of Computer Traders for the financial year ended 31 January 2014, showing all calculations and not only the final answer.

8. May/Jun 2014, Q2.25 marks

   Question 2 consists of two unrelated parts, Part A and Part B. Part B: The accountant of Camera Traders drew up the cash receipts journal and cash payments journal for April 2014 before receiving the April 2014 bank statement. Before the bank statement was received, the journal totals were: total cash receipts R68 300 and total cash payments R53 400. On 1 April 2014 the bank account in the general ledger showed a favourable balance of R26 950, and on 30 April 2014 the bank statement showed a favourable balance of R15 600. Comparing the bank statement to the cash journals revealed the following: (1) items appearing only on the bank statement were bank charges of R500 and interest income of R600; (2) cheques recorded in the cash payments journal but not yet presented to the bank were cheque no. 930 for R2 500, cheque no. 940 for R4 700 and cheque no. 970 for R1 900; (3) a credit entry of R3 100 appearing only on the bank statement was a direct deposit made by a debtor; (4) deposits totalling R35 850 recorded in the cash receipts journal had not yet been credited by the bank; (5) a cheque for R4 300 drawn by another entity was incorrectly reflected on Camera Traders' bank statement; (6) the bank returned, unpaid and marked 'refer to drawer', a cheque for R2 000 that had been received from a debtor; and (7) Camera Traders sublets part of its building to Radio Dealers, who pays a monthly rental of R3 600 via internet banking, and this R3 600 credit entry appears only on the bank statement. Required: complete the cash receipts journal and the cash payments journal of Camera Traders for April 2014, showing the details and bank columns only.

9. May/Jun 2014, Q2.35 marks

   Question 2 consists of two unrelated parts, Part A and Part B. Using the same Camera Traders information given for April 2014 (Part B), prepare the properly balanced/closed-off bank account for April 2014 in the general ledger of Camera Traders.

10. May/Jun 2014, Q2.46 marks

    Question 2 consists of two unrelated parts, Part A and Part B. Using the same Camera Traders information given for April 2014 (Part B), prepare the bank reconciliation statement of Camera Traders as at 30 April 2014.

11. Oct/Nov 2013, Q3.19 marks

    Scenario: you started working as an assistant bookkeeper at RG Traders on 1 July 2013. On 31 July 2013 the bookkeeper handed you the following information. The bank statement of RG Traders for July 2013 (bank's address: 123 Bank Street, Tshwane, 0003) reflects: 1 July balance R56 000; 2 July a debit order to PG Insurers of R2 000 (balance R54 000) and a debit order to Tshwane Municipality of R6 500 (balance R47 500); 5 July a deposit of R17 000 (balance R64 500) and a direct deposit from Mr P Davids of R20 000 (balance R84 500); 8 July cheque no 219 for R500 (balance R84 000) and a deposit of R10 000 (balance R94 000); 9 July service fees of R100 (balance R93 900); 12 July cheque no 220 for R1 600 (balance R92 300) and cheque no 221 for R3 000 (balance R89 300); 15 July a direct deposit from Mrs C Peters of R15 000 (balance R104 300) and a deposit of R30 000 (balance R134 300); 17 July an unpaid cheque relating to Mrs S Singh of R800 (balance R133 500); 19 July cheque no 224 for R3 700 (balance R129 800) and a deposit of R16 000 (balance R145 800); 22 July service fees of R100 (balance R145 700); 24 July a deposit of R10 000 (balance R155 700); 26 July cheque no 226 for R500 (balance R155 200); 29 July a deposit of R6 000 (balance R161 200) and cheque no 228 for R900 (balance R160 300); and 31 July interest of R190 bringing the closing balance to R160 490. RG Traders' cash receipts journal (bank column only, CRJ07) for July 2013, before completion, already shows: 5 July cash sales R17 000; 8 July cash sales R10 000; 9 July receipt from Mr P Fenn R5 000; 12 July receipt from Mrs O Khumalo R4 000; 15 July cash sales R30 000; 19 July cash sales R16 000; 24 July cash sales R10 000; 29 July cash sales R6 000; giving a total of R98 000. RG Traders' cash payments journal (bank column only, CPJ07) for July 2013 already shows: 8 July cheque 219 to AP Stationers R500; 12 July cheque 220 to DG Stores R1 600 and cheque 221 to Tellycome R3 000; 15 July cheque 222 to COG Stores R9 000; 16 July cheque 223 to Petro Traders R2 500; 19 July cheque 224 to XWY Wholesalers R3 700; 22 July cheque 225 to HR Steelworks R5 000; 26 July cheque 226 to KS Sweets R500; 29 July cheque 227 (cash) R200 and cheque 228 to ST Garden Maintenance R900; giving a total of R26 900. Additional information: (a) the unpaid cheque shown in the bank statement on 17 July 2013 is a dishonoured cheque - it was dishonoured because of insufficient funds in the account of Mrs S Singh, a client of RG Traders; (b) the bank account balance in the general ledger of RG Traders as at 1 July 2013 was a favourable balance of R56 000. Using the bank statement details and the information given, complete RG Traders' cash receipts journal and cash payments journal for July 2013, showing only the details and bank columns.

12. Oct/Nov 2013, Q3.26 marks

    Scenario: you started working as an assistant bookkeeper at RG Traders on 1 July 2013. On 31 July 2013 the bookkeeper handed you the following information. The bank statement of RG Traders for July 2013 (bank's address: 123 Bank Street, Tshwane, 0003) reflects: 1 July balance R56 000; 2 July a debit order to PG Insurers of R2 000 (balance R54 000) and a debit order to Tshwane Municipality of R6 500 (balance R47 500); 5 July a deposit of R17 000 (balance R64 500) and a direct deposit from Mr P Davids of R20 000 (balance R84 500); 8 July cheque no 219 for R500 (balance R84 000) and a deposit of R10 000 (balance R94 000); 9 July service fees of R100 (balance R93 900); 12 July cheque no 220 for R1 600 (balance R92 300) and cheque no 221 for R3 000 (balance R89 300); 15 July a direct deposit from Mrs C Peters of R15 000 (balance R104 300) and a deposit of R30 000 (balance R134 300); 17 July an unpaid cheque relating to Mrs S Singh of R800 (balance R133 500); 19 July cheque no 224 for R3 700 (balance R129 800) and a deposit of R16 000 (balance R145 800); 22 July service fees of R100 (balance R145 700); 24 July a deposit of R10 000 (balance R155 700); 26 July cheque no 226 for R500 (balance R155 200); 29 July a deposit of R6 000 (balance R161 200) and cheque no 228 for R900 (balance R160 300); and 31 July interest of R190 bringing the closing balance to R160 490. RG Traders' cash receipts journal (bank column only, CRJ07) for July 2013, before completion, already shows: 5 July cash sales R17 000; 8 July cash sales R10 000; 9 July receipt from Mr P Fenn R5 000; 12 July receipt from Mrs O Khumalo R4 000; 15 July cash sales R30 000; 19 July cash sales R16 000; 24 July cash sales R10 000; 29 July cash sales R6 000; giving a total of R98 000. RG Traders' cash payments journal (bank column only, CPJ07) for July 2013 already shows: 8 July cheque 219 to AP Stationers R500; 12 July cheque 220 to DG Stores R1 600 and cheque 221 to Tellycome R3 000; 15 July cheque 222 to COG Stores R9 000; 16 July cheque 223 to Petro Traders R2 500; 19 July cheque 224 to XWY Wholesalers R3 700; 22 July cheque 225 to HR Steelworks R5 000; 26 July cheque 226 to KS Sweets R500; 29 July cheque 227 (cash) R200 and cheque 228 to ST Garden Maintenance R900; giving a total of R26 900. Additional information: (a) the unpaid cheque shown in the bank statement on 17 July 2013 is a dishonoured cheque - it was dishonoured because of insufficient funds in the account of Mrs S Singh, a client of RG Traders; (b) the bank account balance in the general ledger of RG Traders as at 1 July 2013 was a favourable balance of R56 000. Prepare the properly balanced and closed-off bank account for July 2013 in the general ledger of RG Traders, given that the bank account had a favourable opening balance of R56 000 on 1 July 2013.

13. Oct/Nov 2013, Q3.310 marks

    Scenario: you started working as an assistant bookkeeper at RG Traders on 1 July 2013. On 31 July 2013 the bookkeeper handed you the following information. The bank statement of RG Traders for July 2013 (bank's address: 123 Bank Street, Tshwane, 0003) reflects: 1 July balance R56 000; 2 July a debit order to PG Insurers of R2 000 (balance R54 000) and a debit order to Tshwane Municipality of R6 500 (balance R47 500); 5 July a deposit of R17 000 (balance R64 500) and a direct deposit from Mr P Davids of R20 000 (balance R84 500); 8 July cheque no 219 for R500 (balance R84 000) and a deposit of R10 000 (balance R94 000); 9 July service fees of R100 (balance R93 900); 12 July cheque no 220 for R1 600 (balance R92 300) and cheque no 221 for R3 000 (balance R89 300); 15 July a direct deposit from Mrs C Peters of R15 000 (balance R104 300) and a deposit of R30 000 (balance R134 300); 17 July an unpaid cheque relating to Mrs S Singh of R800 (balance R133 500); 19 July cheque no 224 for R3 700 (balance R129 800) and a deposit of R16 000 (balance R145 800); 22 July service fees of R100 (balance R145 700); 24 July a deposit of R10 000 (balance R155 700); 26 July cheque no 226 for R500 (balance R155 200); 29 July a deposit of R6 000 (balance R161 200) and cheque no 228 for R900 (balance R160 300); and 31 July interest of R190 bringing the closing balance to R160 490. RG Traders' cash receipts journal (bank column only, CRJ07) for July 2013, before completion, already shows: 5 July cash sales R17 000; 8 July cash sales R10 000; 9 July receipt from Mr P Fenn R5 000; 12 July receipt from Mrs O Khumalo R4 000; 15 July cash sales R30 000; 19 July cash sales R16 000; 24 July cash sales R10 000; 29 July cash sales R6 000; giving a total of R98 000. RG Traders' cash payments journal (bank column only, CPJ07) for July 2013 already shows: 8 July cheque 219 to AP Stationers R500; 12 July cheque 220 to DG Stores R1 600 and cheque 221 to Tellycome R3 000; 15 July cheque 222 to COG Stores R9 000; 16 July cheque 223 to Petro Traders R2 500; 19 July cheque 224 to XWY Wholesalers R3 700; 22 July cheque 225 to HR Steelworks R5 000; 26 July cheque 226 to KS Sweets R500; 29 July cheque 227 (cash) R200 and cheque 228 to ST Garden Maintenance R900; giving a total of R26 900. Additional information: (a) the unpaid cheque shown in the bank statement on 17 July 2013 is a dishonoured cheque - it was dishonoured because of insufficient funds in the account of Mrs S Singh, a client of RG Traders; (b) the bank account balance in the general ledger of RG Traders as at 1 July 2013 was a favourable balance of R56 000. Prepare the bank reconciliation statement of RG Traders as at 31 July 2013, taking into account the dishonoured cheque of Mrs S Singh recorded in the bank statement on 17 July 2013 and all other reconciling items arising from the bank statement, cash receipts journal and cash payments journal.

14. May/Jun 2013, Q3.17 marks

    PG Traders has appointed you as its bookkeeper. Your first task is to compare the January 2013 cash journals with the current month's bank statement and to prepare a bank reconciliation statement. While doing this you noted the following differences between the bank statement and the cash journals: (1) on 31 January 2013, before taking into account any of the items listed below, the cash receipts journal showed a bank column total of R27 500 and the cash payments journal showed a bank column total of R13 750; (2) the bank account in PG Traders' general ledger reflected a favourable balance of R14 500 on 31 January 2013; (3) the bank statement of PG Traders reflected an unfavourable balance of R11 700 on 31 January 2013; (4) a Cape Town client, Mr S Stevens, deposited R15 000 directly into PG Traders' bank account; (5) because PG Traders' bank statement balance was unfavourable, the bank charged interest of R350; (6) a cheque for R1 720 received from client Mrs K Osman was recorded in the cash receipts journal and deposited, but was dishonoured due to insufficient funds and returned by the bank marked 'R/D'; (7) the following cheques had not yet appeared on the bank statement: cheque 1213 for R1 800, cheque 1218 for R350, cheque 1220 for R2 700 and cheque 1221 for R3 100; (8) the owner, Mr P Govender, increased his capital contribution by depositing R25 000 directly into the PG Traders bank account; (9) two deposits of R60 000 and R26 410 did not appear on the bank statement because the previous bookkeeper failed to deposit them into the bank account — they were only deposited on 4 February 2013; (10) bank charges for the month amounted to R170; and (11) cheque numbers 1207 (R750), 1208 (R1 000) and 1210 (R600) were listed as outstanding cheques on the December 2012 bank reconciliation statement, of which cheque numbers 1208 and 1210 have since appeared on the January 2013 bank statement while cheque number 1207 is still outstanding. Using the information given about PG Traders' January 2013 transactions and bank statement differences, complete the cash receipts journal and the cash payments journal of PG Traders for January 2013, showing only the details column and the bank column.

15. May/Jun 2013, Q3.26 marks

    PG Traders has appointed you as its bookkeeper. Your first task is to compare the January 2013 cash journals with the current month's bank statement and to prepare a bank reconciliation statement. While doing this you noted the following differences between the bank statement and the cash journals: (1) on 31 January 2013, before taking into account any of the items listed below, the cash receipts journal showed a bank column total of R27 500 and the cash payments journal showed a bank column total of R13 750; (2) the bank account in PG Traders' general ledger reflected a favourable balance of R14 500 on 31 January 2013; (3) the bank statement of PG Traders reflected an unfavourable balance of R11 700 on 31 January 2013; (4) a Cape Town client, Mr S Stevens, deposited R15 000 directly into PG Traders' bank account; (5) because PG Traders' bank statement balance was unfavourable, the bank charged interest of R350; (6) a cheque for R1 720 received from client Mrs K Osman was recorded in the cash receipts journal and deposited, but was dishonoured due to insufficient funds and returned by the bank marked 'R/D'; (7) the following cheques had not yet appeared on the bank statement: cheque 1213 for R1 800, cheque 1218 for R350, cheque 1220 for R2 700 and cheque 1221 for R3 100; (8) the owner, Mr P Govender, increased his capital contribution by depositing R25 000 directly into the PG Traders bank account; (9) two deposits of R60 000 and R26 410 did not appear on the bank statement because the previous bookkeeper failed to deposit them into the bank account — they were only deposited on 4 February 2013; (10) bank charges for the month amounted to R170; and (11) cheque numbers 1207 (R750), 1208 (R1 000) and 1210 (R600) were listed as outstanding cheques on the December 2012 bank reconciliation statement, of which cheque numbers 1208 and 1210 have since appeared on the January 2013 bank statement while cheque number 1207 is still outstanding. Using the information given about PG Traders, prepare the bank account for January 2013 in the general ledger of PG Traders, properly balancing/closing off the bank account at the end of the month.

16. May/Jun 2013, Q3.311 marks

    PG Traders has appointed you as its bookkeeper. Your first task is to compare the January 2013 cash journals with the current month's bank statement and to prepare a bank reconciliation statement. While doing this you noted the following differences between the bank statement and the cash journals: (1) on 31 January 2013, before taking into account any of the items listed below, the cash receipts journal showed a bank column total of R27 500 and the cash payments journal showed a bank column total of R13 750; (2) the bank account in PG Traders' general ledger reflected a favourable balance of R14 500 on 31 January 2013; (3) the bank statement of PG Traders reflected an unfavourable balance of R11 700 on 31 January 2013; (4) a Cape Town client, Mr S Stevens, deposited R15 000 directly into PG Traders' bank account; (5) because PG Traders' bank statement balance was unfavourable, the bank charged interest of R350; (6) a cheque for R1 720 received from client Mrs K Osman was recorded in the cash receipts journal and deposited, but was dishonoured due to insufficient funds and returned by the bank marked 'R/D'; (7) the following cheques had not yet appeared on the bank statement: cheque 1213 for R1 800, cheque 1218 for R350, cheque 1220 for R2 700 and cheque 1221 for R3 100; (8) the owner, Mr P Govender, increased his capital contribution by depositing R25 000 directly into the PG Traders bank account; (9) two deposits of R60 000 and R26 410 did not appear on the bank statement because the previous bookkeeper failed to deposit them into the bank account — they were only deposited on 4 February 2013; (10) bank charges for the month amounted to R170; and (11) cheque numbers 1207 (R750), 1208 (R1 000) and 1210 (R600) were listed as outstanding cheques on the December 2012 bank reconciliation statement, of which cheque numbers 1208 and 1210 have since appeared on the January 2013 bank statement while cheque number 1207 is still outstanding. Using the information given about PG Traders, prepare the bank reconciliation statement of PG Traders as at 31 January 2013.