www.studynotesunisa.co.za
MAY-JUNE 2010
2
, www.studynotesunisa.co.za
Solution 1
1.1 ANCO TRADERS
Cash Receipts Journal- April 2010
Details Amount
(R)
Provisional Total 10 062
Creditors Control/ R. Ndlovu (cheque 1 404
cancelled)
3
, www.studynotesunisa.co.za
Delivery expenses (cheque cancelled) 264
Interest Income 700
Total Receipts 12 430
Cash Payments Journal- April 2010
Details Amount (R)
Provisional Total 12 570
Donations 550
Creditors Control/ R. Ndlovu (cheque reissued) 1 404
Telephone (1980-1818) 162
Debtors Control (A. Botha) 540
Bank Charges (44+60+280) 384
Total Payments 15 610
1.2 ANCO TRADERS
GENERAL LEDGER- APRIL 2010
Bank Account
2010 2010
April Balance b/d 1 536 April Total Payments CPJ 15 610
1 30
Total Receipts CRJ 12 430
30
Balance c/d 1 644
30
15 610 15 610
2010
May 1 Balance b/d 1 644
1.3 Bank reconciliation statement as at 30 April 2010
Debit (R) Credit
(R)
Credit balance per bank statement 10 096
Outstanding deposit 1 038
Outstanding cheques: 1975 3 948
1988 4 290
2001 1 560
2002 2 980
4
, www.studynotesunisa.co.za
Credit balance per bank account 1 644
12 778 12 778
NOTES
Bank Reconciliation
A company`s cash balance at bank and its cash balance according to its accounting records usually do
not match. This is due to the fact that, at any particular date, cheques may be outstanding, deposits
may be in transit to the bank, and errors may have occurred, e.t.c. Therefore companies have to carry
out bank reconciliation process which prepares a statement accounting for the difference between the
cash balance in the company`s cash account and the cash balance according to its bank statement.
Following are the transactions which usually appear in company`s records but not in the bank
statement:
Deposits in transit: Deposits which have been sent by the company to the bank but have not
been received by the bank at proper time before the issuance of the bank statement.
Cheques outstanding: Cheques which have been issued by the company but were not
presented or cleared before the issuance of the bank statement.
Following are the transactions which usually appear in bank statement but not in the company`s
cash account:
Service charges: Service charges may have been deducted by the bank. Such charges are
usually not known by the company before the issuance of the bank statement.
Interest income: If any interest income has been earned by the company on its bank account,
it is not usually entered in the company`s cash account before the issuance of a bank
statement.
NSF Cheques: NSF stands for “not sufficient funds”. These are the cheques deposited by the
company in bank account but the bank is unable to receive payment on those cheques due to
insufficient funds in the payer`s account.
5
MAY-JUNE 2010
2
, www.studynotesunisa.co.za
Solution 1
1.1 ANCO TRADERS
Cash Receipts Journal- April 2010
Details Amount
(R)
Provisional Total 10 062
Creditors Control/ R. Ndlovu (cheque 1 404
cancelled)
3
, www.studynotesunisa.co.za
Delivery expenses (cheque cancelled) 264
Interest Income 700
Total Receipts 12 430
Cash Payments Journal- April 2010
Details Amount (R)
Provisional Total 12 570
Donations 550
Creditors Control/ R. Ndlovu (cheque reissued) 1 404
Telephone (1980-1818) 162
Debtors Control (A. Botha) 540
Bank Charges (44+60+280) 384
Total Payments 15 610
1.2 ANCO TRADERS
GENERAL LEDGER- APRIL 2010
Bank Account
2010 2010
April Balance b/d 1 536 April Total Payments CPJ 15 610
1 30
Total Receipts CRJ 12 430
30
Balance c/d 1 644
30
15 610 15 610
2010
May 1 Balance b/d 1 644
1.3 Bank reconciliation statement as at 30 April 2010
Debit (R) Credit
(R)
Credit balance per bank statement 10 096
Outstanding deposit 1 038
Outstanding cheques: 1975 3 948
1988 4 290
2001 1 560
2002 2 980
4
, www.studynotesunisa.co.za
Credit balance per bank account 1 644
12 778 12 778
NOTES
Bank Reconciliation
A company`s cash balance at bank and its cash balance according to its accounting records usually do
not match. This is due to the fact that, at any particular date, cheques may be outstanding, deposits
may be in transit to the bank, and errors may have occurred, e.t.c. Therefore companies have to carry
out bank reconciliation process which prepares a statement accounting for the difference between the
cash balance in the company`s cash account and the cash balance according to its bank statement.
Following are the transactions which usually appear in company`s records but not in the bank
statement:
Deposits in transit: Deposits which have been sent by the company to the bank but have not
been received by the bank at proper time before the issuance of the bank statement.
Cheques outstanding: Cheques which have been issued by the company but were not
presented or cleared before the issuance of the bank statement.
Following are the transactions which usually appear in bank statement but not in the company`s
cash account:
Service charges: Service charges may have been deducted by the bank. Such charges are
usually not known by the company before the issuance of the bank statement.
Interest income: If any interest income has been earned by the company on its bank account,
it is not usually entered in the company`s cash account before the issuance of a bank
statement.
NSF Cheques: NSF stands for “not sufficient funds”. These are the cheques deposited by the
company in bank account but the bank is unable to receive payment on those cheques due to
insufficient funds in the payer`s account.
5
