Question 1 BANK RECONCILIATION

The information given below was extracted from the accounting records of Mika Stores.

Required

1.1 Complete the Cash Receipts Journal and Cash payments Journal of Mika Stores for March 2018 after taking the information provided into account. Use only the columns illustrated below. In the details column write down the name of the contra account e.g Rent income. (11)

Cash Receipts Journal

Details		Bank
Total	b/f

Cash Payments Journal

	Debit	Credit
Total	b/f

1.2 Post to the Bank account in the General ledger of Mika stores. Balance the account. (3)

Mika Stores

1.3 Prepare the Bank Reconciliation Statement as at 31 March 2018. Use the following format:

INFORMATION

1	The bank colum of each of the cash journals showed the following totals before the March 2018 bank statement was received
	Cash Receipts Journal	300 000
	Cash Payments Journal	350 000
2	A comparison of the cash journals of Mika Stores for March 2018 and the Bank Reconciliation Statement for February 2018 with the bank statement form Key Bank for March 2018 revealed the following differences:
2.1	Entries that appeared on the bank statement but not in the cash journals:	R
2.1.1	A cheque previously received from the lessee for rent was dishonoured because of insufficient funds.	6800
2.1.2	A debit order in favour of Telkom for the personal telephone account of the proprietor.	3800
2.1.3	Charges levied by Key Bank:
	Service fees	1500
	Cash deposit fee	1000
	Interest on overdraft	100
2.1.4	A deposit by a debtor to settle his account of R6200	6000
2.1.5	A deposit by Key Bank for a successful loan application	50 000
2.2	Entries in the cash journals that did not appear in the bank statement:	R
2.2.1	A deposit made on 31 March 2018	102 400
2.2.2	The following cheque issues during March 2018:
	Cheque no. 520	8700

3	Additional information	R
3.1	Cheque no. 490 (dated 23 February 2018) which appeared in the Bank Reconciliation Statement for February 2018 did not appear in the bank statement for March 2018	16140
3.2	Cheque no.460 issues to Rix Soccer Club during January 2018 as a donation must be cancelled as the cliub no longer exists.	4800
3.3	A deposit made by Rika Stores as erroneously reflected on the bank statement of Mika Stores.	4000
3.4	An entry was made in the Cash Payments Journal for a cheque to a creditor MS Suppliers for R10 000. The bank statement reflected the correct amount of the cheque, R11 000.
3.5	The bank account in the ledger of Mika Stores reflected a debit balance on 01 March 2018.	38800
3.6	The bank statement showed an unfavorable balance on 31 March 2018.