Question

QUESTION 3 BANK RECONCILIATION (20 MARKS) a t was extracted from the accounting records of Swanky Traders 3.1 Ota ALE The following information was extracted from the ac REQUIRED Prepare the Bank account in the Ledger of Swanky information below that would have been made each entry. Balance the Bank account in te Ledger of Swanky Traders for March 2013 showing the entries from the at would have been made in the Cash Journals. Show clearly the contra account for t the bank account Tho Cash Joumals are not required. Use the following format a 30 BANK ACCOUNT 2019 Mar 31 Balance bid 3.2 Prepare the Bank Reconciliation Statement as at 31 March 2019. INFORMATION A comparison of the bank statement for March 2019. received from AB Bank, with the March Cash Journals and the Bank Reconciliation Statement as at 28 February 2019 revealed the following which must be taken into account: 1.1 Cheque numbers 43 and 75 for R600 and R4 000 respectively were not presented for payment at the bank during 28 February 2019. 1.2 A deposit for R1 600 on 28 February 2019 appeared in the Cash Receipts Journal only. 2. The deposit made by Swanky Traders on 28 February 2019, R1 600, was credited in the bank statement for March 2019. Cheque no. 75 did not appear in the Bank statement for March 2019. Cheque no.43, issued to AB Stationers for stationery, has been lost by the payee. A cancellation entry is required in the joumais of Swanky Traders. A new cheque will be issued on 01 April 2019. The bank account in the ledger had a credit balance of R15 600 on 31 March 2019 before the Bank statement was received. The bank statement reflected an overdraft of R11 920 on 31 March 2019. AB Bank transferred an amount of R1 800 for interest on fixed deposit into the account of Swanky Traders. This has not yet been recorded. 5. 6. Cheque no. 78 issued to VB Traders for equipment purchased was incorrectly recorded in the Cash Payments Journal as R3 600. The bank statement reflected the correct amount of R2 160

Answer 1

3.1

Bank Account
Date	Particulars		Amount	Date	Particulars		Amount
31.03.19	To Int on FD		R1800	31.03.19	By Balance b/d		R15600
31.03.19	To AB Stationers		R600	31.03.19	By A1 alarms		R600
31.03.19	To VB Traders (Correction in check no. 78) (3600-2160)		R1440	31.03.19	Accounts Receivable - J. tim		R1900
				31.03.19	Bank Charges (840+160+100)		R1100
31.03.19	To Balance c/d		R15360
			R19200				R19200

3.2

Bank Reconciliation Statement as at 31st March, 2019
	Particulars	Amount	Amount
	Overdraft Balance as per Bank Statement		R11920
Less:	Deposit in transit		R4800
Add:	Wrong credit given by bank	R1200
Add:	outstanding check no. 75	R7040	R8240
	Overdraft as per cash ledger		R15360