CHAPTER 23

BANK RECONCILIATION STATEMENTS

Question 1

ANYBANK plc
Bank Statement for Natalie’s Jewellery Store
Date Details Dr Cr Balance
$ $ $
May 1 Balance 1 400 Cr
4 27204 320 1 080 Cr
8 DD Interstate Power plc 670 410 Cr
12 27205 820 410 Dr
15 Sundries 1 780 1 370 Cr
20 SO Ford Holdings plc 480 890 Cr
24 Credit transfer – Smartjewels Ltd 950 1 840 Cr
29 CHR 110 1 730 Cr

Question 2

Bank Statement for Tahir’s Sports Supplies

Date Details Dr Cr Balance
$ $ $
July 1 Balance 930 Cr
6 787891 640 290 Cr
11 787892 310 20 Dr
12 SO Quality Finances plc 450 470 Dr
17 Sundries 1 370 900 Cr
19 Credit transfer – Nana Retail 590 1 490 Cr
23 DD Telecoms plc 220 1 270 Cr
28 CHR 140 1 130 Cr

Question 3

ANYBANK plc
Bank Statement for Natalie’s Jewellery Store
Date Details Dr Cr Balance
$ $ $
May 1 Balance 1 400 Cr
4 27204 320 1 080 Cr
8 DD Interstate Power plc 670 410 Cr
12 27205 820 410 Dr
15 Sundries 1 780 1 370 Cr
20 SO Ford Holdings plc 480 890 Cr
24 Credit transfer – Smartjewels Ltd 950 1 840 Cr
29 CHR 110 1 730 Cr
 BOOKS OF NATALIE’S JEWELLERY STORE
CASH BOOK (bank columns only)
Dr Cr
May 1 Balance 1 400 May 2 General expenses (chq 27204) 320
13 Sales 1 780 9 Latoya Fray (chq 27205) 820
28 Sales 1 240 23 Supagems (chq 27206) 740
28 Drawings (chq 27207) 480
31 Balance c/d 2 060
4 420 4 420
June 1 Balance b/d 2 060

Items not ticked in bank statement:

 DD on 8 May for $670
 Credit transfer on 24 May for $950
 Charges on 29 May for $110

Items not ticked in cash book:

 Cheque 27206 Supagems on 23 May for $740
 Sales on 28 May for $1240

Question 4

Bank Statement for Tahir’s Sport Supplies

Date Details Dr Cr Balance
$ $ $
July 1 Balance 930 Cr
4 787891 640 290 Cr
11 787892 310 20 Dr
12 SO Quality Finances plc 450 470 Dr
17 Sundries 1 370 900 Cr
19 Credit transfer – Nana Retail 590 1 490 Cr
23 DD Telecoms plc 220 1 270 Cr
28 CHR 140 1 130 Cr

BOOKS OF TAHIR’S SPORTS SUPPLIES

CASH BOOK (bank columns only)
Dr Cr
July 1 Balance 930 July 3 TMT Ltd (chq 787891) 640
13 Sales 1 370 8 Drawings (chq 787892) 310
29 Sales 990 20 Stationery (chq 787893) 100
29 Salary (chq 787894) 1 700
31 Balance c/d 540
3 290 3 290
Aug 1 Balance b/d 540

Items not ticked in bank statement:

 SO payment on 12 July for $450
 Credit transfer received on 19 July for $590
 DD payment on 23 July for $220
 Charges paid on 28 July for $140
Items not ticked in cash book:
 Cheque 787893 for $100 on 20 July; cheque 787894 for $1700 on 29 July
 Sales on 29 July for $990

Question 5

BOOKS OF NATALIE’S JEWELLERY STORE

CASH BOOK (bank columns only) – UPDATED
Dr Cr
May 1 Balance 1 400 May 2 General expenses (chq 27204) 320
13 Sales 1 780 9 Latoya Fray (chq 27205) 820
28 Sales 1 240 23 Supagems (chq 27206) 740
28 Drawings (chq 27207) 480
31 Balance c/d 2 060
4 420 4 420
June 1 Balance b/d 2 060 June 1 Electricity (DD) 670
1 Credit transfer 1 Bank charges 110
Smartjewels Ltd 950 Balance c/d 2 230
3 010 3 010
June 1 Balance b/d 2 230

Question 6

BOOKS OF TAHIR’S SPORTS SUPPLIES

CASH BOOK (bank columns only) – UPDATED
Dr Cr
July 1 Balance 930 July 3 TMT Ltd (chq 787891) 640
13 Sales 1 370 8 Drawings (chq 787892 310
29 Sales 990 20 Stationery (chq 787893) 100
29 Salary (chq 787894) 1 700
31 Balance c/d 540
3 290 3 290
Aug 1 Balance b/d 540 Aug 1 Loan repayment 450
1 Credit transfer 1 Telephone (DD) 220
Nana Retail 590 1 Bank charges 140
1 Balance c/d 320
1 130 1 130
Aug 1 Balance b/d 320
Question 7

Either:

NATALIE’S JEWELLERY STORE

Bank Reconciliation Statement at 1 June 2014
$ $
Balance as per bank statement 1 730
Less: unpresented cheque
27206 Supagems 740
990
Add: amount not yet credited 1 240
Balance as per cash book 2 230
Or:
NATALIE’S JEWELLERY STORE
Bank Reconciliation Statement at 1 June 2014
$ $
Balance as per cash book 2 230
Add: unpresented cheque
27206 Supagems 740
2 970
Less: amount not yet credited 1 240
Balance as per bank statement 1 730

Question 8

Either
TAHIR’S SPORTS SUPPLIES
Bank Reconciliation Statement at 1 August 2014
$ $
Balance as per bank statement 1 130
Less: unpresented cheque
787893 Stationery 100
787894 Salary 1 700
1 800
(670)
Add: amount not yet credited 990
Balance as per cash book 320

Or
TAHIR’S SPORTS SUPPLIES
Bank Reconciliation Statement at 1 August 2014
$ $
Balance as per cash book 320
Add: unpresented cheque
787893 Stationery 100
787894 Salary 1 700
1 800
2 120
Less: amount not yet credited 990
Balance as per bank statement 1 130
Question 9

MIDBAY BANK plc

Bank Statement for VECKI WHOLESALE FLOWERS
Date Details Dr Cr Balance
$ $ $
Oct 1 Balance 4 310 Cr
3 447802 JKJ Imports 2 730 1 580 Cr
11 Sundry credit 1 640 3 220 Cr
13 CHR 240 2 980 Cr
18 447804 630 2 350 Cr
21 DD Regional Telecoms plc 550 1 800 Cr
23 Sundry credit 1 890 3 690 Cr
25 Credit transfer: M Deosaran 490 4 180 Cr
26 447805 Gobin Traders 1 480 2 700 Cr
27 SO Transcity Properties 820 1 880 Cr
28 Interest 50 1 930 Cr

BOOKS OF VECKI WHOLESALE FLOWERS

CASH BOOK (bank columns only) – UPDATED
Dr Cr
Oct 1 Balance 4 310 Oct 1 JKJ Imports (chq 447802) 2 730
7 Sales 1 640 3 Electricity (chq 447803) 490
20 Sales 1 150 12 Admin expenses (chq 447804) 630
20 M Lall 740 23 Gobin Traders (chq 447805) 1 480
28 Sales 1 370 26 L Thomas (chq 447806) 810
27 Rent (standing order) 820
31 Balance c/d 2 250
9 210 9 210
Nov 1 Balance b/d 2 250 Nov 1 Bank charges 240
1 Credit transfer 1 Telephone DD 550
M Deosaran 490 1 Balance c/d 2 000
1 Interest 50
2 790 2 790
Nov 1 Balance b/d 2 000

Either
VECKI WHOLESALE FLOWERS
Bank Reconciliation Statement at 1 November 2014
$ $
Balance as per bank statement 1 930
Less: unpresented cheque
447803 Electricity 490
447806 L Thomas 810
1 300
630
Add: amount not yet credited 1 370
Balance as per cash book 2 000
Or
VECKI WHOLESALE FLOWERS
Bank Reconciliation Statement at 1 November 2014
$ $
Balance as per cash book 2 000
Add: unpresented cheque
447803 Electricity 490
447806 L Thomas 810
1 300
3 300
Less: amount not yet credited 1 370
Balance as per bank statement 1 930

Question 10

WESTOWN BANK plc

Bank Statement for ELITE PUBLISHING
Date Details Dr Cr Balance
$ $ $
May 1 Balance 7 328 Cr
5 Sundry credit 3 395 10 723 Cr
6 110744 MLD Books 2 242 8 481 Cr
8 110747 Abbey Stationery Ltd 1 631 6 850 Cr
14 Credit transfer: investment interest 480 7 330 Cr
17 DD Hydro water 722 6 608 Cr
19 110746 Circle Wholesales 1 039 5 569 Cr
20 Sundry credit 4 437 10 006 Cr
22 CHR 330 9 676 Cr
29 SO Publishers Society membership 350 9 326 Cr
30 Interest 90 9 416 Cr

BOOKS OF ELITE PUBLISHING

CASH BOOK (bank columns only)
Dr Cr
May 1 Balance 7 328 May 2 MLD Books (chq 110744) 2 242
2 Sales 2 595 3 Palmleaf Stores (chq 110745) 1 833
2 Dass Books Ltd 800 3 Circle Wholesales (chq 110746) 1 039
18 Sales 4 437 5 Abbey Stationery Ltd (chq 110747) 1 631
27 Sales 3 375 18 General expenses (chq 110748) 538
31 Balance c/d 11 252
18 535 18 535
June 1 Balance b/d 11 252 June 1 Water charges DD 722
1 Credit transfer 1 Bank charges 330
Interest 480 1 Publishers Society membership 350
1 Interest 90 1 Balance c/d 10 420
1
11 822 11 822
June 1 Balance b/d 10 420

Either
 ELITE PUBLISHING
Bank Reconciliation Statement at 1 June 2014
$ $
Balance as per bank statement 9 416
Less: unpresented cheque
110745 Palmleaf Stores 1 833
110748 General expenses 538
2 371
7 045
Add: amount not yet credited 3 375
Balance as per cash book 10 420
Or
ELITE PUBLISHING
Bank Reconciliation Statement at 1 June 2014
$ $
Balance as per cash book 10 420
Add: unpresented cheque
110745 Palmleaf Stores 1 833
110748 General expenses 538
2 371
12 791
Less: amount not yet credited 3 375
Balance as per bank statement 9 416

Question 11

CITYCHOICE BANK plc

Bank Statement for BEST VALUE CARPETS
Date Details Dr Cr Balance
$ $ $
April 1 Balance 4 500 Dr
5 800602 Mungroo Wholesale Ltd 2 300 6 800 Dr
8 Cash and cheques 4 700 2 100 Dr
14 DD Eastern Electricity Ltd 800 2 900 Dr
18 800605 Taylor Textiles 1 400 4 300 Dr
28 CHR 500 4 800 Dr
 BOOKS OF BEST VALUE CARPETS
CASH BOOK (bank columns only)
Dr Cr
4
April 3 Sales 700 April 1 Balance 4 500
28 Sales 4 200 2 Mungroo Wholesale Ltd (chq 800602) 2 300
30 Balance c/d 400 7 Drawings (chq 800603) 400
12 Rent (chq 800604) 700
13 Taylor Textiles (chq 800605) 1 400
9 300 9 300
May 1 Balance c/d 1 700 May 1 Balance b/d 400
1 Electricity DD 800
1 Bank charges 500
1 700 1 700
May 1 Balance b/d 1 700

Either

BEST VALUE CARPETS

Bank Reconciliation Statement at 1 May 2014
$ $
Balance as per bank statement (4 800)
Less: unpresented cheque
800603 Drawings 400
800604 Rent 700
1 100
(5 900)
Add: amount not yet credited 4 200
Balance as per cash book (1 700)
Or
BEST VALUE CARPETS
Bank Reconciliation Statement at 1 May 2014
$ $
Balance as per cash book (1 700)
Add: unpresented cheque
800603 Drawings 400
800604 Rent 700
1 100
(600)
Less: amount not yet credited 4 200
Balance as per bank statement (4 800)
Question 12

SECURE BANK plc

Bank Statement for CYCLE STORES
Date Details Dr Cr Balance
$ $ $
June 1 Balance 4 233 Dr
6 Credit transfer: Cycle World Retail 1 220 3 013 Dr
9 374112 Lakeford Ltd 1 885 4 898 Dr
11 DD Regional Power Supplies plc 478 5 376 Dr
16 CHR 612 5 988 Dr
17 374116 675 6 663 Dr
21 Cash and cheques 2 083 4 580 Dr
26 374113 417 4 997 Dr
28 SO Best Properties plc 840 5 837 Dr

BOOKS OF CYCLE STORES

CASH BOOK (bank columns only)
Dr Cr
June 17 Sales 2 083 June 1 Balance 4 233
29 Sales 4 114 3 Lakeford Ltd (chq 37412) 1 885
30 Balance c/d 3 183 8 General expenses (chq 37413) 417
9 Water charges (chq 37414) 630
12 Castle Furnishings plc (chq 37415) 592
13 Drawings (chq 37416) 675
24 Lakeford Ltd (chq 37417) 948
9 380 9 380
July 1 Credit transfer July 1 Balance b/d 3 183
Cycle World 1 Electricity DD 478
Retail 1 220 1 Bank charges 612
1 Balance c/d 3 893 1 SO Best Properties plc 840
5 113 5 113
July 1 Balance b/d 3 893

Either

CYCLE STORES
Bank Reconciliation Statement at 1 July 2014
$ $
Balance as per bank statement (5 837)
Less: unpresented cheque
37414 Water charges 630
37415 Castle Furnishings Ltd 592
37417 Lakeford ltd 948
2 170
(8 007)
Add: amount not yet credited 4 114
Balance as per cash book (3 893)
Or
CYCLE STORES
Bank Reconciliation Statement at 1 July 2014
$ $
Balance as per cash book (3 893)
Add: unpresented cheque
37414 Water charges 630
37415 Castle Furnishings Ltd 592
37417 Lakeford ltd 948
2 170
(1 723)
Less: amount not yet credited 4 114
Balance as per bank statement (5 837)

Question 13

BOOKS OF ETON LTD

CASH BOOK (bank columns only) – UPDATED
Dr Cr
Nov 30 Balance 7 432 Nov 30 Electricity charges DD 871
30 Interest 50 30 Bank charges 261
30 Balance c/d 6 350
30
7 482 7 482
Dec 1 Balance b/d 6 350

Either

ETON LTD
Bank Reconciliation Statement at 30 November 2014
$ $
Balance as per bank statement 6 295
Less: unpresented cheque
T Pulchan 775
KT Singh 903
1 678
4 617
Add: amount not yet credited 1 733
Balance as per cash book 6 350

Or
ETON LTD
Bank Reconciliation Statement at 30 November 2014
$ $
Balance as per cash book 6 250
Add: unpresented cheque
T Pulchan 775
KT Singh 903
1 678
8 028
Less: amount not yet credited 1 733
Balance as per bank statement 6 295
Question 14

BOOKS OF SOPHIA THOMAS

CASH BOOK (bank columns only) – UPDATED
Dr Cr
July 31 Credit transfer July 31 Balance b/d 885
Excel Products 1 040 31 Bank charges 96
31 Balance c/d 422 31 Insurance SO 481

1 462 1 462
Aug 1 Balance b/d 422

Either

SOPHIA THOMAS
Bank Reconciliation Statement at 31 July 2014
$ $
Balance as per bank statement (1 583)
Less: unpresented cheque
H Khan 947
2 530
Add: amount not yet credited 2 108
Balance as per cash book (422)

Or
SOPHIA THOMAS
Bank Reconciliation Statement at 31 July 2014
$ $
Balance as per cash book (422)
Add: unpresented cheque
H Khan 947
525
Less: amount not yet credited 2 108
Balance as per bank statement (1 583)

EXAM-STYLE QUESTIONS

Q Ans Q Ans Q Ans Q Ans Q Ans

15 A 16 B 17 C 18 D 19 C
Question 20

(a) The bank columns of Samah’s cash book are the record of one of her assets,
so any decrease in the asset is recorded as a credit entry. The bank
statement is, however, the record of a liability from the bank’s point of view,
so any decrease in the liability is recorded as a debit entry.
(b)

BOOKS OF SAMAH
CASH BOOK (bank columns only) – UPDATED
Dr Cr
May 31 Balance 840 May 31 Bank charges 90
31 Interest received 50 31 Standing order 620
31 Trade receivable 880 31 Balance c/d 1 062
1 772 1 772
June 1 Balance b/d 1 062

(c)

$
Balance as per updated cash book at 31 May 2014 1 062
Unpresented cheque (550)
Amount not yet credited 640
Balance as per bank statement at 31 May 2014 1 152

(d) Answer could include:

 checks that the bank columns of a cash book and the bank statement are in
line with each other and helps identify any discrepancies between the two
records
 enables the banks columns of a cash book to be brought up to date
 because the cash book is regularly checked against an independent source
(the bank statement) the process helps reduce the chance of fraud.