1.-BANK-RECON-very-good, for accoun.pptx

BANK-RECON-very-good.

1. RECONCILIATION SK

2. BANK RECONCILIATION

3. CONCEPTS – BASELINE ASSESSMENT Cash payment journal This is used to record all transactions involving the payment made by cheque 10 Cheque Interest on current account A document used when cash payment is made for goods or services 9 Interest that is earned on the favourable/credit balance of a current account 13

4. CONCEPTS – BASELINE ASSESSMENT Debit order An agreement between you and a company or a third party in which you authorise the company or third party to take money out of your banking account for services that entity provides to you. Debit orders may be for fixed or variable amounts . 6 Bank Statement A document sent by the bank on a monthly basis indicating a summary of deposits and payments . 7 A cheque returned by the bank because the drawer has insufficient funds, cheque not signed, altered, amount in figures does not correspond with amount in words, post-dated etc . 19 Dishonoured cheque

5. CONCEPTS – BASELINE ASSESSMENT Direct deposit An amount that is directly deposited into the current account of the business. 11 Cash receipts journal This is used to record all transactions involving the receipt of money and deposits are made into the current account of the business 1 The business withdraws more money from its current account than what it has in the account . 5 Bank overdraft

6. CONCEPTS – BASELINE ASSESSMENT Internet Banking Using a computer for doing bank transactions over the internet 2 Receipt A document issued when cash is received for goods or services 4 Money that the business borrows for more than 12 months 20 Loan

7. CONCEPTS – BASELINE ASSESSMENT Stop order An instruction given to your bank to pay funds across to a third party, at a fixed amount on a regular basis. The bank acts on your instructions and the third party is not given authority to debit your account as is the case with a debit order . 15 Current account An account opened at the bank by the business and used for the depositing and the payment of monies . 3 A cheque that is dated for the future which is kept by the payee and presented to the bank for payment on the due date . 12 Post-dated Cheque

8. CONCEPTS – BASELINE ASSESSMENT Interest Monies either earned or paid when an investment is made or when a loan is borrowed, respectively . 16 Stale cheque A cheque which has not been paid because its date is too old i.e. more than six months old 22 The person who is writes out a cheque to pay another person or business . 18 Drawer

9. CONCEPTS – BASELINE ASSESSMENT Interest on overdraft Interest that is paid on an unfavourable/debit balance of a current account 8 Fixed deposit Surplus funds are invested at a bank or other financial institution for a specific term e.g. 1 year . 21 The person or business to which a cheque is made out . 14 Payee Bank Charges The bank charges the current account holder for items such as service fees, cash handling fees, credit card sales levy etc . 17

10. THE BANK ACCOUNT IS A MIRROR IMAGE OF THE BANK STATEMENT THE BUSINESS – BANK ACCOUNT THE BANK – CURRENT ACCOUNT The business has money (favourable balance) in the bank The Bank Account will have a debit balance (+A) The Bank owes the business money – Credit Balance Liability in the banks records The business owes the Bank monies (Unfavourable/Overdraft). The Bank Account will have a credit balance (+L ) The business becomes a debtor to the Bank – Debit balance. An Asset in the bank records . Deposits made into the bank current account. Entry in CRJ and a debit entry in the Bank Account (+A ) The bank will credit the current account . Cheques presented for payment to the bank. Entry are made in the CPJ and a credit entry in the Bank Account (+L ) The bank will debit the current account .

11. Why is it important for a business to prepare a monthly bank reconciliation statement? For internal control purposes – minimise fraud or error because records are checked to an external source To compare the books of the business with that of the bank in order to detect errors and/or dishonesty at an early stage. To reconcile the bank statement balance with the bank account balance. To identify the correct bank balance/update records. The books of the business and that of the bank should agree and the bank balance should be the same in both books Improves internal control by identifying outstanding cheques and deposits. Deposits made and cheques issued not only affect the business but also the bank concerned

12. Why is it important for a business to prepare a monthly bank reconciliation statement? The business keeps a record of all cash transactions The bank also keeps a record of its transactions with the business The books of the business and that of the bank should agree and the bank balance should be the same in both books. Comparisons between the books of the business and that of the bank must be made on a monthly basis by preparing a bank reconciliation statement Errors and dishonesty can be detected on a monthly basis.

13. PROCEDURES FOR THE CONTROL OF CASH Separate duties The same people should not handle the cash and keep the records for the cash. Deposit funds daily Total cash receipts for the day should be deposited by the end of that day. This minimizes cash on-hand and prevents / discourages theft. Deposit funds intact Cash received during the day should not be available for making payments or for borrowing by employees.

14. PROCEDURES FOR THE CONTROL OF CASH Make all payments by cheque or electronic transfer of funds Except for petty cash expenditures and cash refunds, payments are made by cheque or electronic transfer of funds. This allows the use of bank records to collaborate company records. Endorse cheques “for deposit only” Ensures each cheque can only be credited to the business’s bank account.

15. PROCEDURES FOR THE CONTROL OF CASH Prepare deposit slips in duplicate The deposit slip shows the details of the deposit … great for dealing with any questions. The teller should stamp the duplicate as evidence the deposit was made. Reconcile bank accounts monthly The process of comparing the company’s records with the bank’s records. Ensures all differences are accounted for. The bank records act as independent verification.

16. ETHICS Ethics plays an important role in deterring fraud and abuse in businesses. Therefore the goal of an effective compliance program is to create an ethical corporate culture . Start by creating a work environment that defines and reinforces anti-theft behavior. Establish clear, written policies for all procedures and processes Make a background check and pre-hire assessment a routine part of the hiring process for all employees. Check vendors’ dealings with other companies before approving them. Require references and check them

17. ETHICS Segregate duties such as making deposits and reconciling statements, approving and paying invoices, authorizing and signing checks, keeping payroll records and writing payroll checks, and receiving payments and posting them to accounts receivable. Monitor controls and their effectiveness The single most effective way to prevent theft is to make clear that it will not go undetected . Cross-train employees to cover vacations and illness, and make all the internal controls visible.

18. PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL Bring down the totals of the CRJ and CPJ Bring down the total of the Bank account in the General Ledger. Bring down the balance from the bank statement in the Bank Reconciliation Statement . Compare Journals with the Bank Statement Tick off entries that correspond & circle those that do not previous month’s Bank Reconciliation Statement Favourable balance entered on debit side. Unfavourable balance entered on credit side Favourable / credit balance entered in the credit column Unfavourable/debit balance entered in the debit column Make additional entries or correct errors Cr entries on BS with CRJ & Cr entries previous BS D r entries on BS with CPJ & Dr entries previous BS Total Journals & reconcile with BS

19. Credit items on the bank Statement and not in the CRJ Deposits from previous month Tick off against previous month’s Bank Reconciliation Statement (credit late deposit) Interest on credit balance/interest on current account CRJ Dr Bank (+A) Cr Interest on Current Account (+ E) Direct Deposit into the statement For rental of premises Fixed deposit that matures Interest on fixed deposit Bad debts recovered By debtor CRJ Dr Bank (+A) Cr Rent Income (+E)/ Fixed Deposit (-A)/ Interest on Fixed Deposit(+ E)/ Bad Debts Recovered (+E)/ Debtor’s Control (-A)

20. Credit items on the bank Statement and not in the CRJ Deposit entered on the bank statement in error i.e . another bank customer deposited money into his/her account and the bank credited the business account in error Bank Reconciliation Statement in the debit column Debit correction of error . The bank will debit the bank statement in the following month.

21. Debit items on the Bank Statement and not in the CPJ Service fees, cash handling fees, transaction levy etc. (Bank Charges) CPJ Dr Interest on Overdraft (- E) Cr Bank (-A) Interest on overdraft (Interest on debit balance) CPJ Dr Bank Charges (-E) Cr Bank (-A) Stop orders/debit orders (e.g. Insurance/Loan repayment) CPJ Dr Insurance (-E)/ Loan : …..Bank (-L) Cr Bank (-A)

22. Credit items on the bank Statement and not in the CRJ Dishonoured Cheques – cheques that are stamped by the bank and returned Insufficient funds Altered cheques Not signed by drawer Words in figures does not correspond to amounts in figures Post-dated cheques mistakenly deposit CPJ Dr Debtor’s Control (+ A) Cr Bank (-A Cheques drawn by a another person/business and debited on the bank statement of the business Reconciliation Statement in the credit column Credit correction of error. The bank will credit the bank statement in the following month. Cheques drawn in previous months Tick off against previous month’s Bank Reconciliation Statement

23. Items in the CRJ and not in the Bank Statement Deposits Bank Reconciliation Statement in the credit column Credit late deposit The bank will credit the bank statement in the following month.

24. Items in the CPJ and not the Bank Statement Cheques (including salary cheques) Bank Reconciliation Statement in the debit column Debit outstanding cheques The bank will debit the bank statement in the following month.

25. Items on the previous month’s Bank Reconciliation Statement Cheques that still need to presented for payment Bank Reconciliation Statement in the debit column Debit outstanding cheques The bank will debit the bank statement when the cheque is presented for payment Cheques that are lost in transit   Stale cheque – more than 6 months old CRJ – CANCEL CHEQUE Dr Bank (+A) Cr ……..Account (+E – Expense / -A – Asset /+ L – Liability If a new cheque is required: CPJ Dr ……..Account (-E – Expense +A – Asset / -L – Liability Cr Bank Bank Reconciliation Statement in the Debit column – Debit outstanding cheques

26. Cheque amounts do not correspond in the Bank Statement and the CPJ The Bank Statement amount R320 is more than the CPJ amount R230 (too LITTLE) Find the difference: R320 – R230 = R90 CPJ Dr ……..Account (-E – Expense/ + A – Asset/-L – Liability Cr Bank The Bank Statement amount R450 is less than the CPJ amount R540 (too MUCH) Find the difference: R540 – R450 = R90 Cancel this amount by making an entry in the CPJ DR Bank (+A) Cr ……..Account (+E – Expense/ -A – Asset/+L – Liability

27. Post-dated cheques received Post-dated cheques received NO ENTRY Cheque is kept in a safe place and deposited on the due date. If the cheque is mistakenly entered in the CRJ and deposited Dishonoured cheque CPJ Dr Debtor’s Control (+A) Cr Bank (- A )

28. Post-dated cheque written out by the business Post-date cheque written out by the business CPJ Dr ……..Account (-E – Expense / + A – Asset /- L – Liability Cr Bank   Bank Reconciliation Statement in the debit column – debit outstanding cheques

29. WORKWITH ACTIVITY

30. 1 Bring down the totals of the CRJ and CPJ. PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL CASH RECEIPTS JOURNAL OF LAMEESE TRADERS FOR JULY 2014 CRJ No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ

31. 2 Bring down the total of the Bank account in the General Ledger. This amount may be given or will appear in the previous month’s Bank Reconciliation Statement. Favourable balance entered on debit side. Unfavourable balance entered on credit side PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL BANK RECONCILIATION STATEMENT ON 30 JUNE 2014   DEBIT CREDIT Debit balance according to bank account 27 000   GENERAL LEDGER OF LAMEESE TRADERS Dr. BANK Cr. 2014 Jul   01   Balance   b/d   27 000

32. 3 Bring down the balance from the bank statement in the Bank Reconciliation Statement. Favourable/credit balance entered in the credit column. Unfavourable/debit balance entered in the debit column. PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance     R R Debit 15 500 - 44 544 BANK RECONCILIATION STATEMENT ON 30 JULY 2014   DEBIT CREDIT Credit balance as per Bank Statement   44 544

33. 4 Compare the credit entries on the bank statement with the entries in the CRJ and with credit entries in the previous month’s Bank Reconciliation Statement (credit late deposit). Compare the debit entries on the Bank statement with the entries in the CPJ and the debit entries in the previous month’s Bank Reconciliation Statement (debit outstanding cheques). 5 Tick off entries that appear on Bank statement and CRJ/CPJ/Previous Month’s Bank Reconciliation Statement. Circle the amounts that do not correspond. Ensure that the amounts correspond. PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL

34. BANK RECONCILIATION STATEMENT ON 30 JUNE 2014   DEBIT CREDIT Credit balance according to bank statement   17 250 Credit outstanding deposit   22 750 Debit cheques not yet presented for payment:   No. 319 (14 January 2014) 2 200   No. 425 ( 26 April 2014) 3 600   No. 426 ( 30 June 2014) 7 200   Debit balance according to bank account 27 000     40 000 40 000 BANK STATEMENT Day Description   Balance     R R 1 Balance brought forward   17 250   Credit 22 750 + 40 000   Cheque 426 7 200 - 32 800 2 Credit 19 000 + 51 800   Cash handling fee 50 - 51 750 3 Cheque 427 700 - 51 050 4 Cheque 425 3 600 - 47 450            

35. CASH RECEIPTS JOURNAL OF LAMEESE TRADERS FOR 2014 BANK STATEMENT   Doc no   D   Details F Analysis of receipts   Bank 378 2 K. Khalick   450   379   M. Moosa   270   C90   Sales   18 280 19 000 380 8 S. Salie   10 000   381   A. Ayoob   720   C91   Sales   22 280 33 000 382 15 J. Julie   900   383   M. Madi   450   C92   Sales   14 650 16 000 C93 22 Sales   17 000 17 000 384 31 T. Thebus   910   C94   Sales   24 090 25 000           110 000 D Description       R 1 Balance brought forward  17 250     Credit  22 750 +   Cheque 426   7 200 - 2 Credit 19 000 +   Cash handling fee 50 - 3 Cheque 427 700 - 4 Cheque 425   3  600 - 5 Service fees 240 - 7 City of Joburg 900 -   Cheque 428 13 900 -   Cheque 429 4 500 - 8 Credit 33 000 +   Cash handling fees 100 -   Credit 12 000 + 9 Unpaid cheque (M. Moosa) 270 - 10 Tax levy on debit transactions 90 - 11 Cheque 430 11 600 - 12 Fast Insurers 1 800 - 14 Cheque 431 14 400 - 15 Credit 16 000 +   Cash handling fees 50 - 16 Cheque book 120 - 18 Cheque 432 5 400 - 22 Cheque 433 10 500 -   Credit 17 000 +   Cash handling fees 50 - 29 Cheque 435 7 200 - 30 Interest 2 714 + 31 Credit 3 000 +   Debit 15 500 -        

36. Doc no D Name of Payee F Bank 427 2 Telkom   700 428 3 Teddy Traders   19 300 430 10 Panda Traders   11 600 431 14 Cash   14 400 432 16 Hola Designs   4 500 433 22 Bees Traders   10 500 434 26 Ant Ltd   16 000 435 29 Links Traders   7 200 436 30 Snowy Repairs   2 800         87 000 CASH PAYMENTS JOURNAL OF LAMEESE TRADERS FOR 2014 BANK STATEMENT D Description       R 1 Balance brought forward  17 250     Credit  22 750 +   Cheque 426   7 200 - 2 Credit  19  000 +   Cash handling fee 50 - 3 Cheque 427 700 - 4 Cheque 425   3  600 - 5 Service fees 240 - 7 City of Joburg 900 -   Cheque 428 13 900 -   Cheque 429 4 500 - 8 Credit  33 000 +   Cash handling fees 100 -   Credit 12 000 + 9 Unpaid cheque (M. Moosa) 270 - 10 Tax levy on debit transactions 90 - 11 Cheque 430 11 600 - 12 Fast Insurers 1 800 - 14 Cheque 431 14 400 - 15 Credit  16  000 +   Cash handling fees 50 - 16 Cheque book 120 - 18 Cheque 432 5 400 - 22 Cheque 433 10 500 -   Credit  17 000 +   Cash handling fees 50 - 29 Cheque 435 7 200 - 30 Interest 2 714 + 31 Credit 3 000 +   Debit 15 500 -                        

37. Day Description   Balance     R R 1 Balance brought forward    17 250   Credit  22 750 + 40 000   Cheque 426   7 200 - 32 800 2 Credit  19 000 + 51 800   Cash handling fee 50 - 51 750 3 Cheque 427   700 - 51 050 4 Cheque 425   3 600 - 47 450 5 Service fees 240 - 27 210 7 City of Joburg 900 - 46 310   Cheque 428  13 900 - 32 410   Cheque 429 4 500 - 27 910 8 Credit  33 000 + 60 860   Cash handling fees 100 - 60 810   Credit 12 000 + 72 810 9 Unpaid cheque (M. Moosa) 270 - 72 540 10 Tax levy on debit transactions 90 - 72 450

38. 11 Cheque 430   11 600 - 60 850 12 Fast Insurers 1 800 - 59 050 14 Cheque 431   14 400 - 44 650 15 Credit  16 000 + 60 650   Cash handling fees 50 - 60 600 16 Cheque book 120 - 60 480 18 Cheque 432  5 400 - 55 080 22 Cheque 433   10 500 - 44 580   Credit  17 000 + 61 580   Cash handling fees 50 - 61 530 29 Cheque 435   7 200 - 54 330 30 Interest 2 714 + 57 044 31 Credit 3 000 + 60 044   Debit 15 500 - 44 544 Bank Charges R50 + R240 + R100 + R90 + R50 + R120 + R50 = R700

39. 6 Make entries as indicated previously and as shown in your workbook. Total and cast the journals and post to the Bank Account in the General Ledger. Total and balance the Bank Reconciliation Statement. PROCEDURE IN RECONCILING THE BANK STATEMENT AND THE CASH JOURNAL SOLVE ALL THE RINGED/HIGHLIGHTED ITEMS

40. BANK RECONCILIATION STATEMENT ON 30 JUNE 2014   DEBIT CREDIT Debit cheques not yet presented for payment:   No. 319 (14 January 2014) 2 200   Cheque 319 is stale. It was decided to reissue a cheque, no 437 to Child Care Centre as a donation. CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations

41. BANK RECONCILIATION STATEMENT ON 30 JULY 2014   DEBIT CREDIT Credit balance as per Bank Statement   44 544 Credit late deposit   Debit outstanding cheques   No 437 2 200 Balance as per Bank Account  

42. CASH RECEIPTS JOURNAL OF LAMEESE TRADERS FOR JULY 2014     Sundry accounts   Doc No   D   Details F Analysis of receipts   Bank   Amount   F   Details C94   Sales   24 090 25 000 BANK RECONCILIATION STATEMENT ON 30 JULY 2014   DEBIT CREDIT Credit balance as per Bank Statement   44 544 Credit late deposit   25 000 Debit outstanding cheques   No 437 2 200 Balance as per Bank Account  

43. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS FOR 2014 Doc no D Name of Payee F Bank 428 3 Teddy Traders   19 300   Cheque 428 13 900 - BANK STATEMENT Cheque no 428 reflects the correct amount in the bank statement. It was discovered that trading stock purchase was R13 600 and Stationery R300. R13 600 + R300 = R13 900 19 300 – 13 900 = R5 400 Bank Statement is correct therefore too much recorded in CPJ CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations B/S   Teddy Traders 5 400 5 400   Trading stock

44. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS FOR 2014 Doc no D Name of Payee F Bank 432   16 Hola Designs   4  500 18 Cheque 432 5 400 - BANK STATEMENT Cheque 432 is reflected correctly in the Bank Statement . R5 400 = R4 500 = R900 Bank Statement is correct therefore too Little recorded in CPJ CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising

45. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS FOR 2014 Doc no D Name of Payee F Bank 434   26   Ant Ltd   16  000 NO ENTRY BANK STATEMENT THIS IS A BUSINESS’ POST DATED CHEQUE BANK RECONCILIATION STATEMENT ON 30 JULY 2014   DEBIT CREDIT Credit balance as per Bank Statement   44 544 Credit late deposit   25 000 Debit outstanding cheques   No 434 16 000 No 437 2 200 Balance as per Bank Account  

46. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS FOR 2014 Doc no D Name of Payee F Bank 436   30 Snowy Repairs   2 800 NO ENTRY BANK STATEMENT THIS IS A BUSINESS’ POST DATED CHEQUE BANK RECONCILIATION STATEMENT ON 30 JULY 2014   DEBIT CREDIT Credit balance as per Bank Statement   44 544 Credit late deposit   25 000 Debit outstanding cheques   No 434 16 000 No 436 2 800 No 437 2 200 Balance as per Bank Account  

47. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance   2 Cash handling fee 50 - 5 Service fees 240 -   8 Cash handling fees 100 - 10 Tax levy on debit transactions 90 -   15 Cash handling fees 50 - 16 Cheque book 120 - 16   22 Cash handling fees 50 - Bank Charges R50 + R240 + R100 + R90 + R50 + R120 + R50 = R700 CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges

48. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance 7 City of Joburg 900 - The payment to the City of Joburg was a debit order for water and rates CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates

49. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance   Cheque 429 4 500 - Cheque no 429 was paid to Chef Hotel School as fees for the owner’s son. The accountant neglected to enter this in the books of the business CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates 429   L Lameese 4 500 4 500   Drawings

50. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance   8 Credit 12 000 + On 8 July 2014 MAP Consultancy deposited their rent directly in the bank account of Lameese Traders. CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations B/S   Teddy Traders 5 400 5 400   Trading stock B/S   MAP Consultancy 12 000 12 000   Rent Income

51. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance 9 Unpaid cheque (M. Moosa) 270 - The unpaid cheque was received from M. Moosa on 2 July 2014 CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates 429   L Lameese 4 500 4 500   Drawings B/S   M Moosa 270 270   Debtors Control

52. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance 12 Fast Insurers 1 800 - The payment to Fast Insurers was a stop order for the insurance premium. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates 429   L Lameese 4 500 4 500   Drawings B/S   M Moosa 270 270   Debtors Control B/S   Fast Insureres 1 800 1 800   Insurance

53. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance 30 Interest 2 714 + CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations B/S   Teddy Traders 5 400 5 400   Trading stock B/S   MAP Consultancy 12 000 12 000   Rent Income B/S   Yen Bank 5 714 2 714   Interest on current account INTEREST IS A + THEREFORE IT IS INTEREST EARNED – INTEREST ON CURRENT ACCOUNT RECORDED IN THE CRJ

54. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance 31 Credit 3 000 + CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations B/S   Teddy Traders 5 400 5 400   Trading stock B/S   MAP Consultancy 12 000 12 000   Rent Income B/S   Yen Bank 2 714 2 714   Interest on current account B/S   Yen Bank 3 000 3 000 Interest on Fixed Deposit The credit amount of R3 000 on 31 July was for interest on fixed deposit

55. BANK STATEMENT OF LAMEESE TRADERS - JULY 2014 Day Description   Balance   31 Debit 15 500 - The debit on 31 July is for Loan payment of R15 000 and interest, R500 CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates 429   L Lameese 4 500 4 500   Drawings B/S   M Moosa 270 270   Debtors Control B/S   Fast Insurers 1 800 1 800   Insurance B/S   Yen Bank 15 500 15 000   Loan: yen Bank         500   Interest on Loan

56. CASH RECEIPTS JOURNAL OF LAMEESE TRADERS JULY 2014 CRJ7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 110 000       B/S   Child Care Centre 2 200 2 200   Donations B/S   Teddy Traders 5 400 5 400   Trading stock B/S   MAP Consultancy 12 000 12 000   Rent Income B/S   Yen Bank 2 714 2 714   Interest on current account B/S   Yen Bank 3 000 3 000 Interest on Fixed Deposit 135 314 Dr. BANK Cr. 2014 Jul   01   Balance   b/d   27 000 31 Total receipts CRJ 135 314 GENERAL LEDGER OF LAMEESE TRADERS

57. CASH PAYMENTS JOURNAL OF LAMEESE TRADERS JULY 2014 CPJ 7 No. D DETAILS BANK SUNDRY ACCOUNTS AMOUNT F DETAILS   31 Totals 87 000       437   Child Care Centre 2 200 2 200   Donations 432   Hola Designs 900 900   Advertising B/S   Yen Bank 700 700   Bank Charges B/S   City of Joburg 900 900   Water and Rates 429   L Lameese 4 500 4 500   Drawings B/S   M Moosa 270 270   Debtors Control B/S   Fast Insurers 1 800 1 800   Insurance B/S   Yen Bank 15 500 15 000   Loan: yen Bank         500   Interest on Loan 113 770

58. GENERAL LEDGER OF LAMEESE TRADERS Dr. BANK Cr. 2014 Jul   01   Balance   b/d   27 000 2014 Jul   30   Total Payments   CPJ   113 770 31 Total receipts CRJ 135 314     Balance c/d 48 544         162 314         162 314 2014 Aug 01 Balance b/d 48 544   DEBIT CREDIT Credit balance as per Bank Statement   44 544 Credit late deposit   25 000 Debit outstanding cheques   No 434 16 000 No 436 2 800 No 437 2 200 Balance as per Bank Account 48 544   69 544 69 544 BANK RECONCILIATION STATEMENT ON 30 JULY 2014

59. Complete Activity 1