BANK RECONCILIATION

REQUIRED
1 Prepare the Bank account for April 2014 in the ledger of Limpopo Traders showing all the
entries that would have been made in the cash journals. Show clearly the contra account
for each entry. Balance the Bank account.
2 Prepare the Bank Reconciliation Statement as at 30 April 2014.
INFORMATION
1. The bank account in the General Ledger of Limpopo Traders reflected a debit balance of R18 600
on 30 April 2014 before the bank statement for April was received.
2. The bank statement as at 30 April 2014 showed a favourable balance of R8 400.
3. A deposit of R21 000 which was recorded in the Cash Receipts Journal on 30 April 2014 was
credited by the bank on 01 May 2014.
4. The following cheques, listed in the Bank Reconciliation Statement as at 31 March 2014, did not
appear on the April 2014 bank statement:
Cheque no. 234 R2 240
Cheque no. 274 R3 200
Note: Cheque no. 234 was dated 28 October 2013. This cheque was issued to Metro Suppliers for
consumable stores.
5. Cheque no. 295 for R17 900, issued during April 2014, has not yet been presented to the bank for
payment.
6. The following entries for April 2014 appeared on the bank statement and must now be recorded:
6.1 Service fees, R600
6.2 Cash deposit fee, R500
6.3 Credit card commission, R360
6.4 Interest on credit balance, R100.
7. A cheque for R4 000 received from a debtor, H. Smith, and deposited on 21 April 2014 was
dishonoured on presentation. No entry has been made to record this dishonoured cheque which
was originally received in settlement of a debt of R4 100.
8. Cheque 294 for R3 200, relating to equipment purchased from Makro, was incorrectly entered in
the Cash payments Journal as R320. The error must now be corrected.
9. The bank statement erroneously reflected a deposit of R500 that should have appeared on the
bank statement of another client of the bank.
10. The April 2014 bank statement reflected a debit order in favour of JK Properties for rent,
R4 800.