The following information was taken from the books of Zia Traders on 30 June 2019: 1. The items appearing on the bank reconciliation statement of Zia Traders as at 31 May 2019. Details Amount(R) Balance as per bank statement (unfavourable) 25 400 Outstanding deposit 5 700 Outstanding cheques: CHQ116 1 430 CHQ135 2 780 Correction of incorrect cheque (see note 2.5 below) 570 Balance as per bank account ? 2. A comparison of the cashbooks for June, the above bank reconciliation statement and the bank statement for June showed the following: 2.1 Provisional totals in the cashbooks on 30 June: Cashbook Receipts R 113 200 Cashbook Payments R 96 000 2.2 The outstanding deposit at the end of May for R5 700 appeared on the bank statement on 5 June 2019. 2.3 Cheque number CHQ135 appeared on the bank statement on 7 June for R3 100. An investigation revealed that the bank statement amount was correct. 2.4 Cheque number CHQ116 still did not appear on the bank statement for June 2019. The cheque was originally written out to Gift for the Needy as a donation on 20 November 2018. 2.5 The correction of the incorrect cheque for R570 refers to a cheque that was incorrectly debited twice by the bank. This error has not been rectified by the bank. 2.6 The bookkeeper is in possession of two cheques that she has not entered as she is unsure of what to do: 20 2020 © The Independent Institute of Education (Pty) Ltd 2020 Page 6 of 14 CHQ 141 for R5 400 issued to Gilford’s Furnisher’s dated 15 July 2019. CHH 101 received from a debtor, M Habana, for R 3 200, dated 25 July 2019. 2.7 The following cheques appear on the cashbook payments but not on the bank statement: CHQ 138 for R 1 200( dated 4 June 2019) CHQ 140 for R 680 ( dated 21 June 2019) 2.8 The bank statement showed an electronic transfer into our account from V. Vice, a debtor for R 5 000. 2.9 The bank statement showed the following charges: Bank charges – R 450 Interest on overdraft – R 740 A dishonoured cheque for R870 originally received from F. Ford in settlement of her debt of R960. A debit order to the insurance company for R 3 600 2.10 An investigation revealed the bank has paid the insurance policy twice, i.e. the actual amount is R 1 800. This mistake was also made last month. They have promised to rectify the matter and to refund the amount to the business. The insurance is paid by debit order. Debit orders are captured in the monthly cashbook payments from the bank statement. 2.11 The cashbook receipts showed an amount of R15 600 on 30 June 2019 that did not appear on the bank statement. 2.12 The bank statement received on 30 June showed an unfavourable balance of R19 980. Required: Q.2.1 Calculate the correct bank balance at 30 June 2019. (Hint – Start by calculating the bank balance at 31 May 2019). Q.2.2 Prepare the bank reconciliation statement at 30 June 2019.
The following information was taken from the books of Zia Traders on 30 June
2019:
1. The items appearing on the
at 31 May 2019.
Details Amount(R)
Balance as per bank statement (unfavourable) 25 400
Outstanding deposit 5 700
Outstanding cheques:
CHQ116 1 430
CHQ135 2 780
Correction of incorrect cheque (see note 2.5 below) 570
Balance as per bank account ?
2. A comparison of the cashbooks for June, the above bank reconciliation
statement and the bank statement for June showed the following:
2.1 Provisional totals in the cashbooks on 30 June:
Cashbook Payments R 96 000
2.2 The outstanding deposit at the end of May for R5 700 appeared on
the bank statement on 5 June 2019.
2.3 Cheque number CHQ135 appeared on the bank statement on
7 June for R3 100. An investigation revealed that the bank
statement amount was correct.
2.4 Cheque number CHQ116 still did not appear on the bank statement
for June 2019. The cheque was originally written out to Gift for the
Needy as a donation on 20 November 2018.
2.5 The correction of the incorrect cheque for R570 refers to a cheque
that was incorrectly debited twice by the bank. This error has not
been rectified by the bank.
2.6 The bookkeeper is in possession of two cheques that she has not
entered as she is unsure of what to do:
20 2020
© The Independent Institute of Education (Pty) Ltd 2020
Page 6 of 14
CHQ 141 for R5 400 issued to Gilford’s Furnisher’s dated 15
July 2019.
CHH 101 received from a debtor, M Habana, for R 3 200,
dated 25 July 2019.
2.7 The following cheques appear on the cashbook payments but not
on the bank statement:
CHQ 138 for R 1 200( dated 4 June 2019)
CHQ 140 for R 680 ( dated 21 June 2019)
2.8 The bank statement showed an electronic transfer into our account
from V. Vice, a debtor for R 5 000.
2.9 The bank statement showed the following charges:
Bank charges – R 450
Interest on overdraft – R 740
A dishonoured cheque for R870 originally received from F.
Ford in settlement of her debt of R960.
A debit order to the insurance company for R 3 600
2.10 An investigation revealed the bank has paid the insurance policy
twice, i.e. the actual amount is R 1 800. This mistake was also made
last month. They have promised to rectify the matter and to refund
the amount to the business. The insurance is paid by debit order.
Debit orders are captured in the monthly cashbook payments from
the bank statement.
2.11 The cashbook receipts showed an amount of R15 600 on 30 June
2019 that did not appear on the bank statement.
2.12 The bank statement received on 30 June showed an unfavourable
balance of R19 980.
Required:
Q.2.1 Calculate the correct bank balance at 30 June 2019.
(Hint – Start by calculating the bank balance at 31 May 2019).
Q.2.2 Prepare the bank reconciliation statement at 30 June 2019.
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