Introduction
Welcome to Accounting Science Lesson WebQuest by Miss Ishmail
https://images.app.goo.gl/91kn54SvbNGVJVax8
A bank reconciliation statement is a document that compares the cash balance on a company's balance sheet to the corresponding amount on its bank statement.
Tap the link below to watch the video:
https://m.youtube.com/watch?v=fxPGqd-R1hg&t=8s
Task
Class Activity
The bookkeeper of Majozi Stores received the Bank statement from the First Rand Bank on 31 January 2021.
REQUIRED:
- Compare the Bank Statement with the CRJ and the CPJ
- Supplement (add the relevant extra entries to Cash Journals and total the Bank columns only)
- Post the Bank totals in the CRJ and CPJ to the Bank account in the General Ledger
- Draw up the Bank Reconciliation Statement on 31 January 2021
- Explain one reason why it is important for a business to prepare a monthly Bank Reconciliation Statement
INFORMATION
Bank Statement received from First Rand Bank
|
First Rand Bank Majozi Stores 85 Adderly Street; P O Box 272 37273 Dala Crescent Branch Code: 201 409 Khayelitsha Tel: 021 487 6000 7784 Statement period: 01 January 2021 – 31 January 2021 |
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|
FRB CURRENT ACCOUNT: 62177668814 |
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|
Date |
Description |
Debit (-) |
Credit (+) |
Balance |
|
01 Jan |
Opening Balance |
|
|
9 200 |
|
10 Jan |
Deposit: S Marray |
|
2 500 |
11 700 |
|
15 Jan |
Debit order: OBE Insurers |
1 400 |
|
10 300 |
|
17 Jan |
DF Malan |
|
2 800 |
13 100 |
|
19 Jan |
EFT (Mino Stores) |
3 750 |
|
9 350 |
|
20 Jan |
EFT (CNA) |
350 |
|
9 000 |
|
21 Jan |
Deposit (EFT by tenant: S Omar) |
|
1 500 |
10 500 |
|
25 Jan |
Debit order: Multi Choice |
1 000 |
|
9 500 |
|
26 Jan |
EFT (Faff Traders) |
1 200 |
|
8 300 |
|
29 Jan |
Cash deposit fee |
95 |
|
8 205 |
|
31 Jan |
Service fee |
70 |
|
8 135 |
|
31 Jan |
Interest income |
|
240 |
8 375 |
A. Majozi Stores
Cash Receipts Journal for January 2021
|
Doc no |
Day |
Details |
Fol |
Bank |
Sales |
Cost of sales |
Sundry Accounts |
|
|
Amount |
Details |
|||||||
|
CRT |
10 |
S Marray |
|
2 500 |
|
|
2 500 |
Debtors control |
|
28 |
17 |
DF Malan |
|
2 800 |
|
|
2 800 |
Debtors control |
|
CRT |
30 |
Sales |
|
7 500 |
7 500 |
5 000 |
|
|
|
|
|
|
|
12 800 |
13 500 |
9 000 |
5 300 |
|
SHAPE \* MERGEFORMAT
B. Majozi Stores
Cash Payment Journal for January 2021
|
Doc no |
Day |
Details |
Fol |
Bank |
Sundry Accounts |
|
|
Amount |
Details |
|||||
|
EFT 01 |
19 |
Mino Stores |
|
3 750 |
3 750 |
Equipment |
|
EFT 02 |
20 |
CNA |
|
350 |
350 |
Stationery |
|
EFT 03 |
26 |
Faff Traders |
|
1 200 |
1 200 |
Creditors control |
|
EFT 04 |
30 |
Karl Motors |
|
2 300 |
2 300 |
Repairs |
|
|
|
|
|
7 600 |
2 650 |
|
SHAPE \* MERGEFORMAT
Additional information:
1. The bank account in the General ledger has a favourable balance of R9 200 on 1 January 2021.
The bank statement is received on 28th of each month
Process
PART 1:
- Compare the credit column of the bank statement with the Bank column of the CRJ
- Compare the debit column of the bank statement with the Bank column of the CPJ
- Tick off items which appear in both the bank statement and the cash journals
- Circle all the items which have not been ticked off
PART 2:
-Enter the totals into the CRJ, CPJ and Bank account.
- Circled amounts in the credit (+) column of the bank statement must be entered into the CRJ.
- Circled amounts in the debit (-) column of the bank statement must be entered into the CPJ.
-Total the bank columns of the CRJ and CPJ and post these totals to the Bank account.
PART 3:
-Enter the closing balance on the bank statement into the BRS
-Circle amounts in the CRJ must be entered into the credit column of the BRS.
-Circle amounts in the CPJ must be entered into the debit column of the BRS.
-Enter the closing balance in the bank account into the BRS
Evaluation
Memorandum
Majozi Stores Cash Receipts Journal for January 2021
|
Doc No. |
Day |
Details |
Fol |
Bank |
Sundry Accounts |
|
|
|
Amount |
Fol |
Details |
|||||
|
|
31 |
Totals |
|
12 800 |
5 300 |
|
|
|
B/S |
|
S. Omar |
|
1 500 |
1 500 |
|
Rent Income |
|
|
|
First Rand Bank |
|
240 |
240 |
|
Interest income |
|
|
|
|
|
14 540 |
|
|
|
Cash Payments Journal for January 2021
|
Doc No. |
Day |
Details |
Fol |
Bank |
Sundry Accounts |
|
|
|
Amount |
Fol |
Details |
|||||
|
|
31 |
Totals |
|
7 600 |
2 650 |
|
|
|
BS |
|
OBE Insurers |
|
1 400 |
1 400 |
|
Insurance |
|
|
|
Multi-Choice |
|
1 000 |
1 000 |
|
DSTV |
|
|
|
First Rand Bank |
|
165 |
165 |
|
Bank charges |
|
|
|
|
|
10 165 |
|
|
|
General Ledger of Majozi Stores
|
Dr |
|
|
|
BANK |
|
|
|
Cr |
|
|
2021 Jan |
1 |
Balance |
b/d |
9 200 |
2021 Jan |
31 |
Total payments |
CPJ |
10 165 |
|
|
31 |
Total receipts |
CRJ |
14 540 |
|
|
Balance |
c/d |
13 575 |
|
|
|
|
|
23 740 |
|
|
|
|
23 740 |
|
2021 Feb |
1 |
Balance |
b/d |
13 575 |
|
|
|
|
|
Bank Reconciliation Statement on 31 January 2021
|
|
Debit |
Credit |
|
Cr Balance as per Bank Statement |
|
8 375 |
|
Cr Outstanding deposit |
|
7 500 |
|
Dr Outstanding EFT’s: |
|
|
|
04 |
2 300 |
|
|
Dr Balance as per Bank account |
13 575 |
|
|
|
15 875 |
15 875 |
|
5. |
Explain ONE reason why it is important for a business to prepare a monthly Bank Reconciliation Statement. |
|
|
|
Conclusion
At the end of the lesson, learners will be able to:
- Understand information provided in the Bank account and the Bank Reconciliation Statement
- Identify problem areas regarding all aspects of reconciliations and make appropriate suggestions
- Reconcile bank balances with the bank statement
- Develop an understanding of the importance of ethical principles to a business
Credits
- Accounting Grade 11: Bank Reconciliation YouTube. Mindset. 12 June 2015
https://youtu.be/DM04aF1YEzU
- Bank Reconciliations YouTube. Mindset. 04 February 2013.