ACCOUNTING

GRADE 11
Chapter 1
Reconciliation
Worksheet - Memo
Compiled by:
Mrs Brimecombe
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 TABLE OF CONTENTS Page
Bank Reconciliation Activity 1 3

Bank Reconciliation Activity 2 4

Bank Reconciliation Activity 3 6

Bank Reconciliation Activity 4 7

Bank Reconciliation Activity 5 9

Bank Reconciliation Activity 6 11

Creditors’ Reconciliation Activity 7 14

Creditors’ Reconciliation Activity 8 16

Creditors’ Reconciliation Activity 9 17

Creditors’ Reconciliation Activity 10 19

Accounting – Grade 11 [Chapter 1] All Rights Reserved.

BANK RECONCILIATION
ACTIVITY 1

1.1 CASH RECEIPT JOURNAL - MARCH 2021 CRJ 3

Doc Day Details Bank Amount Details
30 Total 118 960
B/S P.Piet 8 500 8 500 Rent income
B/S Mona Bank 96 96 Interest on current
account 7
127 556

CASH PAYMENT JOURNAL - MARCH 2021 CPJ 3

Doc Day Details Bank Amount Details
30 Total 40 400
B/S Fast Insurers 4 400 4 400 Insurance
B/S Parys Water and electricity
Municipaliy 4 150 4 150
10
B/S Mona Bank 430 430 Bank charges
49 380

1.2 GENERAL LEDGER OF DADDY STORES

Bank
2021 2021
Balance b/d 12 340
Mar 1 Mar 31 Sundry Accounts 49 380
2021
Mar 31 Sundry Accounts 127 556 Balance 90 516


139 896 139 896

7
Balance 90 516

3
1.3 Prepare a Bank Reconciliation Statement for March 2021.

Debit Credit
Balance according to bank statement
81 916 
Cr. Outstanding deposit 21 000 
Dr. Outstanding EFT No 6 12 400 
Dr. Balance according to the bank account 90 516
See 1.2. 
both figures must be the same 102 916  102 916
5

BANK RECONCILIATION
ACTIVITY 2
2.1 CASH RECEIPT JOURNAL - AUGUST 2021 CRJ 3
Doc Day Details Bank Amount Details
31 Total 66 000 66 000
B/S D. Dawie 9 600 9 600 Rent income
B/S K. Nokanda 6 700 6 700 Debtors Control
B/S HL Bank 85 85 Interest on current 10
account
82 385 82 385

CASH PAYMENT JOURNAL - AUGUST 2021 CPJ 3

Doc Day Details Bank Amount Details
31 Total 58 500 58 500
B/S Town Council 4 890 4 890 Water and
electricity
B/S Best Insurers 5 300 5 300 Insurance
13
B/S ABBA Bank 4 500 4 500 Loan
B/S HL Bank 711 711 Bank charges
73 901 73 901

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2.2 GENERAL LEDGER OF JENNY STORES
Bank
2021 2021
Aug 1 Balance 11 300 Aug 31 Sundry Accounts 73 901

Aug 31 Sundry Accounts 82 385 Balance 19 784

93 685 93 685

Balance 19 784 6

2.3 Prepare a Bank Reconciliation Statement for August 2021.

Debit Credit
Balance according to bank statement 
balancing figure 2 645
Cr. Outstanding deposit 21 700 
Dr. Outstanding EFT – 222 7 220 
– 223 2 896 
Cr amount wrongly debited 5 555 
Dr. Balance according to the bank account 19 784
See 4.2 
29 900  29 900
both figures must be the same

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BANK RECONCILIATION
ACTIVITY 3
3.1
BANK ACCOUNT BANK RECONCILIATION
Debit Credit Debit Credit No Entry
Total b/f 296 511 263 948
1(a) 310
1(b) 3 500
2 800
3 200
4 9 600
5 5 200
6 X
7 X
8 X
9 6 000
10 (a) 17 400
10 (b) 8 800
TOTALS 297 311 285 258
14

3.2 Calculating the bank account balance on 31 January 2021.

297 311 - 31 723 - 285 258

= R19 670 unfavourable

From 1.1 297 311 Balance b/d 31 723

Balance c/d 19 670 From 1.1 285 258

5
Balance b/d 19 670 Unfavourable

3.3 Briefly explain the purpose of preparing a bank reconciliation statement

It is an internal control processto ensure that all entries are captured correctly by the
business and by the bank.

Prevents fraud and theft.

2
Any 2 x 1

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BANK RECONCILIATION
ACTIVITY 4

4.1 Bank account and balance the account on 28 February 2021.

GENERAL LEDGER OF VERMAAK TRADERS
BALANCE SHEET SECTION
Dr BANK Cr
2021 2021
Feb 1 Feb 28 Sundry
Balance b/d 474 188 53 991
accounts
28 Sundry accounts 64 811 Sales 62 420
Bank
Fixed deposit: BX
52 000 charges (543 890
Bank
+ 94 + 253)
Interest on fixed
2 000 Insurance 6 200
deposit
Rent income 18 200 Drawings 2 200
Interest on current Loan: CM
108 4 300
account Bank
Water and
56 230
electricity
Balance c/d 425 076

611 307 611 307

2021 27
March 1 Balance b/d 425 076

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4.2 Prepare the bank reconciliation statement on 28 February 2021.

Debit Credit

Balance as per Bank Statement 392 650

Outstanding deposit on 25 February 2021 13 820

Outstanding deposit on 25 February 2021 22 336

Outstanding EFT 323 6 361

Credit amount incorrectly debited 2 631

Balance as per Bank Account 425 076

431 437 431 437 8

Both figures must be the same

4.3 Why is it essential to prepare a monthly bank reconciliation statement? Provide TWO
reasons.

The books of the business and the bank should agree.

It is done for internal control purposes.
It updates records.
Errors, omissions and dishonesty can be detected on a monthly basis. 4

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BANK RECONCILIATION
ACTIVITY 5
5.1 CONCEPTS

5.1.1 True
3
5.1.2 False

5.1.3 True

5.2.1

Cash Receipts Account to be Cash Payments Account to be

Journal credited Journal debited

R49 000 R48 000

8 300 Rent income 5 000 Fee Income
2 750 Debtors control 3 200 Water and
electricity
20 000 Fixed deposit: BB 5 900 Creditors control
Investment
450 Interest on fixed 1 500 Drawings
deposit
5 100 Insurance
232 Interest on bank 28
overdraft
1 112 Bank charges
80 500 70 044

5.2.2 GENERAL LEDGER OF MARIAAN STORES

Bank
2021 Sundry CRJ 80 500 2021 Balance b/d 11 400
Sept 30 accounts Sept 1
Balance c/d 944 30 Sundry CPJ 70 044
accounts
81 444 81 444
2021
Oct Balance b/d 944
1 6

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5.2.3 Prepare a Bank Reconciliation Statement for SEPTEMBER 2021.

Debit Credit

Balance as per bank statement 7 256 

Outstanding deposit 17 400 

Outstanding EFT 222 6 600 

Debit amount incorrectly credited 19 000 

Balance as per bank account 944 

7
25 600 25 600

5.3 (a) Identify the GAAP principle which will be applied in this case.

GAAP Principle:
Principle of prudence 
1
(b) Provide TWO internal control measures that Mariaan can use to prevent
such a loss in future.

Any TWO valid point  

 Division of duties/Rotation of duties/Divide duties amongst employees so that the

one can act as a check on the other / The person issuing receipts should not be
the same person doing the deposits.
 Responsible staff members to check/make the deposits.
 Regular and timely supervision / monitor cash deposits
 Cash must be deposited daily (check deposit slip against receipts).
 Outstanding deposits must be investigated promptly.
 Encourage EFT payments by customers / debtors.
 Request bank to send confirmation of all transactions (e.g. sms). 4

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BANK RECONCILIATION
ACTIVITY 6
GDE COMMON CONTROL TEST 2021

6.1 CONCEPTS

6.1.1 False 

6.1.2 False 

6.1.3 True 

6.1.4 True 

6.1.5 True 
5

6.2.1 CASH RECEIPTS JOURNAL

Cash Receipts Journal of Jozie Traders for March 2021

Doc Sundry Accounts
Day Details Fol Bank
no Amount Details

31 Total b/d 27 800

B/S Derek *  4 500 4 500 Rent Income 

B/S BF Bank   440 440 Interest on current account 

Check if total b/d is added  32 740

*Amount and correct details

07

11
6.2.2 CASH PAYMENTS JOURNAL

Cash Payments Journal of Jozie Traders for March 2021

Doc Sundry Accounts

Day Details Fol Bank
no
Amount Details

31 Total b/d 17 250

B/S San Insurers *# 3 400 $ 2 380 Insurance 

#1 020 Drawings 

B/S Telkom * 2 200 2 200 Telephone 

B/S BF Bank   681 681 Bank Charges 

Check if total b/d is
added  23 531
*Amount and correct details
*# Allocate one mark for the correct figure if details are incorrect
$ Any figure (Bank) x 70%
# Any figure (Bank) x 30% 13

6.2.3 BANK ACCOUNT

GENERAL LEDGER OF JOZIE TRADERS

BALANCE SHEET ACCOUNTS SECTION

DR BANK CR
202
2021
Mar
01 Balance b/d  12 000 1 31 Total Payments  CPJ  23 531
Mar

31 Total Receipts  CRJ  32 740 Balance c/d 21 209

44 740 44 740
2021
Apr 01 Balance b/d  21 209

06

12
6.2.4 BANK RECONCILIATION STATEMENT ON 31 MARCH 2021

DEBIT CREDIT
Cr Balance as per bank statement  12 009
Cr Outstanding deposit  15 500
Dr outstanding EFT
No. 04  4 300
No. 05  2 000
Dr Balance as per bank account  21 209

1 mark for both totals  27 509 27 509

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6.3. INTERNAL CONTROL

6.3.1 Explain to Trevor why it is important that he prepares the Bank Reconciliation
Statement at the end of each month. Provide THREE points
Three valid reasons   
 Improves internal control by minimizing fraud or error because records are
checked against an external source.
 Improves internal control by identifying outstanding EFTs and deposits.
 To compare the books of the business with that of the bank in order to detect
errors and dishonesty at an early stage.
Expected responses for 1 mark
Internal control purposes, to reconcile the bank account 6

6.3.2 Provide THREE advantages of internet banking.

Any three valid points   
 Do not have to stand in queues to pay accounts
 Don’t have to walk around with cash
 Maintain your own internet banking limits
 Payments can be made immediately and send proof of payment to a
beneficiary 6

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CREDITORS RECONCILIATION
ACTIVITY 7

7.1 Creditors Ledger of West End Wholesalers

FOL DEBIT CREDIT BALANCE

b/f 10 991
Balance
GJ 300 11 291
Discount cancelled
GJ 70 11 221
Amount understated on goods
returned
GJ 4 000 15 221
Account incorrectly debited
(2 000 x 2)
8

7.2 Creditors Reconciliation Statement as at 28 February 2021.

DEBIT CREDIT

Balance as per statement from West End 16 091

Error on statement - Invoice 540

Payment not yet recorded 5 000

Invoice not recorded 4 670

Balance as per Creditor Ledger 15 221

 If totals are the same 20 761 20 761

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7.3.1 What action should be taken by Tembisa Traders to recover the
R55 000? Provide TWO points.
Explanation: one mark each
 He should be brought in for investigation.
 The employee(s) responsible should be subjected to disciplinary hearing.
 A case should be opened at SAPS against the suspect(s)
 Suspend the employee(s) depending on the outcome of the case.
 Dismiss the employee (s), for violating conduct rules.
 Deduct from salary / demand payment through legal action 2

7.3.2 Provide at least TWO internal control measures that should be applied to prevent
the occurrence of similar incidences.
Explanation: one mark each
 Division of duties or senior personnel to authorise the purchases.
 When goods are received, the receiving officer should check the stock
delivered against invoice and order form.
 Regular checks of physical stock against the records / stock cards
 Conduct internal audits or check documents to detect errors and fraud.
 Monthly reconciliation of creditors
 Inform the suppliers of the procedure to be followed when goods are
delivered 2

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CREDITORS RECONCILIATION
ACTIVITY 8
ADAPTED - GDE COMMON CONTROL TEST 2017

CREDITORS LEDGER OF KGASHANE TRADERS

JABULANI SUPPLIERS
Date Details Fol Debit Credit Balance

April 30 Incorrect balance 63 616

Correction on Invoice 724 2016 61 600

(15716 – 13700)

Correction on Invoice 340 9700 51 900

Interest on overdue account 180  52 080

 One mark for two correct details

CREDITORS RECONCILIATION STATEMENT- APRIL 2021

Balance as per creditors statement 51 840

Discount allowed –Omitted  (3480)

Credit note 138 ( 840 + 840+  (1680)

Invoice 830 issued after the 30 April  5 400

 52 080

One mark for two correct details

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CREDITORS RECONCILIATION
ACTIVITY 9
ADAPTED – FREE STATE 2021

9.1 The bookkeeper, Litzie, says it is not necessary for her to prepare a Creditors'
Reconciliation Statement because the creditors send monthly statements to the
business anyway. What would you say to her? State TWO points.

Any TWO valid points   Must be 2 separate points;

Award part-marks for incomplete answers
Expected responses:
 The statement could contain errors.
 This is an internal control measure.
 This will lead to detection of errors/omissions/fraud.
 To compare/check/reconcile the account to the statement.
 To ensure VAT return is correct / to assist in doing the VAT return.
4

9.2
No. Creditors' Ledger of Statement of account
KZ Stores received from Valley Ltd
Balance 112 820 182 150
1.
– 9 000 – 9 000
2.  + 87 500
3.
+ 7 200
4.
 - 1 400
5.
 - 630
6.
 + 2 100
7.  - 5 250
 - 5 250
- 10 500 (2 marks)
8.
+ 4 600

182 920 * 182 920 *

16

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9.3.1` Explain what action should be taken against J van Wyk. State TWO points.
Any two valid points   Must be 2 separate points; Cannot conflict with each other
Award part-marks for incomplete answers

 Must be subjected to a disciplinary hearing

 Open a criminal case at SAPS
 Redeploy pending decision / suspend pending decision (on outcome of the
hearing/case)
 Require employee to refund/repay employer for the costs/deduct from
salary/take legal action for repayment
 Dismiss him as this is gross misconduct
Do not accept warning as a valid point for 2 marks unless candidate also mentions repayment as a point – in
context of R37 500 fraud, warning alone is not sufficient

For 1 mark:

Dismiss the employee / fire him; Warning; Redeploy him; Suspend him; Sue him;
Take legal action. 4

9.3.2 What must the business do to prevent a similar incident in future? Explain
THREE points.
Any THREE valid points    Must be 3 separate points;
For 2 marks:
 Division of duties so that each person serves as a check on another / get
someone else to authorise these transactions.
 Rotate duties so that employees do not have permanent control over an
aspect of the business.
 Conduct internal audits / check documents to detect the fraud and errors.
 Physical stock control (to records) / check stock on hand to stock records.
 When goods are received, the receiving officer must check the stock
received to the invoice and order form.
 Inform suppliers of the procedure for delivering goods to the business and
do not deviate from this.

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CREDITORS RECONCILIATION
ACTIVITY 10

10.1
No. Creditors' Ledger of SIYA Statement of account received
Stores from LEBO Suppliers
Balance 29 260 20 100
1. +1 460
2. 540
(13 480 – 12 940)
3.
-420 
4.
-1 500
5.
+6 500

+6 000

-500

30 720 * 30 720 * 12

10.2 Why does the Statement of Account from LEBO Suppliers start on 26 January
2021? Mention ONE point why this internal measure is in place and give an
example from the information supplied to illustrate the identified point.
Explanation: two marks
 The Statement of account is closed off on 25th every month so that the
statement can reach the debtor before the end of the month. All transactions
after the 25th will only appear on the next Statement of account. 
Or
 To ensure that the debtor receives the account in time to pay the amount
outstanding, the statement of Account is closed off on 25th of every month
Example: two marks
Invoice 1412, invoice 1443 and the Debit Note 102 were all transactions that took
place after the 25th of the month. These entries will only appear on the next
Statement of Account.. 2

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10.3 The internal auditor insists that direct payments (EFTs) must be used to pay
suppliers.
Explain ONE reason to support his decision.
ONE reason  part-marks for partial / incomplete answers
It is quick and easy / easier to monitor / efficient / convenient / safer/ EFTs may be
lost / not time-bound (business hours) / less bank charges / no need to keep track of
outstanding EFTs / makes claiming cash discounts easier / avoid interest on late
payments 2

Explain ONE internal procedure to ensure control over this system.

ONE internal control measure  part-marks for partial / incomplete answers

For two marks:
Senior personnel authorized to make internet payments
Two people to authorise an EFT transaction (allocation of duties)
Security codes for users (unique codes) / change codes regularly
Notification from bank (sms / email) when payments are effected
For one mark: Division of duties 2

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