ADDENDUM Q3 QUESTION: BANK RECONCILIATION (35 marks; 20 minutes) The following information relates to Hartfield Suppliers for April 2018. REQUIRED: 1.1 Bank reconciliation: 1.1.1 Show the entries that must be recorded in the Cash Journals by completing the table in the ANSWER BOOK. (14) 1.1.2 Calculate the Bank Account balance in the Ledger of Hartfield Suppliers on 30 April 2018. (3) 1.1.3 Prepare the Bank Reconciliation Statement on 30 April 2018. (8) 1.2 The internal auditor is concerned about the management of cash. 1.2.1 Explain TWO different problems to justify her concern. Quote figures. (4) 1.2.2 Give advice (TWO points) on how such problems can be avoided in future. (2) 1.3 Explain TWO benefits of using the electronic funds transfer (EFT) system rather than chegues for direct payments to suppliers. (4) INFORMATION: A. Extract from the Bank Reconciliation Statement on 31 March 2018: Favourable balance as per Bank Statement Outstanding deposits: Dated 10 March 2018 Dated 25 March 2018 Outstanding cheques: 502 (dated 19 October 2017) 613 (dated 24 April 2018) 614 (dated 26 April 2018) Favourable balance as per Ledger Account R18 450 12 675 25 000 4 800 13 400 6 950 30 975 NOTE: The outstanding deposit of R12 675 appeared on the Bank Statement on 28 April 2018. The outstanding deposit of R25 000 did not appear on the Bank Statement for April 2018. An investigation revealed that this money was never been deposited. The cashier employed in March has left the country and cannot be traced. Cheque 614, R6 950, was presented for payment. B. Provisional totals in the Cash Journals on 30 April 2018 before receiving the Bank Statement: Cash Receipts Journal, R510 607 Cash Payments Journal, R488 260 B. Provisional totals in the Cash Journals on 30 April 2018 before receiving the Bank Statement: Cash Receipts Journal, R510 607 Cash Payments Journal, R488 260 C. Entry in the April 2018 Cash Receipts Journal, not in the April 2018 Bank Statement: DOCUMENTS Deposit slip 998 DATE 20 DETAILS Sales BANK R10 000 D. Entries in the April 2018 Cash Payment Journal, not in the April 2018 Bank Statement: DOCUMENTS DATE Cheque 652 (dated 24 June 2018) 25 S Small ("EFT) 30 *EFT: electronic funds transfer/direct payment DETAILS MM Suppliers Drawings BANK R5 650 R2 500) E. Information on the April 2018 Bank Statement, which did not appear in the April 2018 Cash Journals: DEBIT CREDIT 6 250 575 145 DATE 10 17 18 21 24 28 28 DETAILS M Mamba ("EFT by tenant) Cash deposit fees Interest Unpaid cheque: Apple Service fees Debit order (Kruger Insurers) Debit order (Kruger Insurers) 230 1 425 1 850 1 850 NOTE: The unpaid cheque was received from debtor A Apple to settle his account of R250. The debit order for the monthly insurance appeared on the Bank Statement twice. The bank will rectify this on the Bank Statement for next month. F. Information in the April 2018 Bank Statement that does not agree with the Cash Payments Journal for April 2018: Chegue 633, recorded as R2 630 in the Cash Payment Journal, annears correctly on the Bank Statement as follows: R6 230 G. The Bank Statement on 30 April 2018 reflected a balance of R?. 35 = QUESTION 3 Make use of Question (ADDENDUM Q3) (Bank reconciliation) to explain the process and HOW you would approach this exercise to explain it to Accounting learners. Assessment Criteria: 3.1 Explain in short HOW you would explain this question about Bank reconciliation to Accounting learners (5) Hey he is going Roderige Best Remme/ What bank (15) WTppare completed a new project Bet Redesigning Bank Reconciliation 3.2 Design a POSTER for your Accounting classroom to illustrate the process of "Bank reconciliation