BANK RECONCILIATION (20 MARKS)

The information given below was extracted from the accounting records of Sunrisers Traders.

REQUIRED

3.1 Complete the Cash Receipts Journal and Cash Payments Journal of Sunrisers Traders for March 2016. All entries must indicate the correct contra ledger account in the Details column. Cast the Journals. Use the following format: (10)

2. 3.2 Post to the Bank account in the General ledger. Balance the account. (4)

3. 3.3 Prepare the Bank Reconciliation Statement as at 31 March 2016. Use the following format: (6)

Bank Reconciliation Statement as at 31 March 2016

INFORMATION

A comparison of the bank statement for March 2016 with the March cash journals and the Bank

Reconciliation Statement as at 29 February 2016, revealed the following:

1. The balance in the bank account in the ledger of Sunrisers Traders on 28 February 2016 was R12

   000 (DR).

2. Provisional totals of the Bank column of the Cash journals on 31 March 2016 were:

   Cash Receipts Journal R34 200

   Cash Payments Journal R42 400.

3. Cheque no. 146 for R300 (dated 16 January 2016) that appeared on the Bank Reconciliation

   Statement as at 28 February 2016 has still not yet been presented for payment.

4. Cheque no. 67 for R600 (dated 14 September 2015) is now stale and must be cancelled. The

   cheque was issued to Ilembe Soccer Club as a donation but the club has disbanded.

5. A debtor, M. Peters, whose account of R500 was written off as irrecoverable previously, made an

   electronic transfer of R280 into the banking account of Sunrisers Traders.

6. A cheque for R1 200 from a tenant, Bonstore, that was received and deposited by Sunrisers Traders

   on 23 March 2016 was returned by the bank marked refer to drawer insufficient funds.

7. Cheque no. 172, issued during March 2016, to Exco Stationers for stationery was recorded in the

   Cash Payments Journal as R800 instead of R880.

8. Cheque no. 183 for R7 500, issued to Makro on 13 March 2016 for the purchase of equipment, did

   not appear on the bank statement for March 2016.

9. A debit order for R500 in favour of Rap Bank appeared on the bank statement for March 2016. This

   amount was for interest on loan, R40, and repayment of loan R460.

10. A deposit of R7 200 on 31 March 2016 did not appear on the bank statement for March 2016.

11. The following entries appeared on the bank statement only:

    Service fees R200 Cash deposit fees R145 Interest on credit balance R50.

12. A stop order in favour of the municipality by another client of the bank appeared in error on the bank statement of Sunrisers Traders, R1 500.

13. The bank statement reflected a credit balance of R1 705 on 31 March 2016.