2020 SACSS 3N POA EOY P2 Q3
3 Kisha’s Cash at Bank account is as follows:
Cash at bank account | |||||
Date | Particulars | Cheque No. | Dr | Cr | Balance |
2020 | $ | $ | $ | ||
June 1 | Balance b/d | 6 520 Dr | |||
7 | 5200 | 1 630 | 4 890 Dr | ||
11 | 1 850 | 6 740 Dr | |||
20 | Office Machinery | 5201 | 1 024 | 5 716 Dr | |
21 | Adawiyah | 5202 | 1 510 | 4 206 Dr | |
22 | Li Xian | 800 | 5 006 Dr | ||
29 | Advertising expense | 5203 | 1 776 | 3 230 Dr | |
Interest income | 190 | 3 420 Dr | |||
30 | Niva Batik | 160 | 3 580 Dr | ||
Kisha received the bank statement which showed the following transactions for the month of June 2020.
Date | Particulars | Withdrawal | Deposit | Balance | |
2020 | $ | $ | $ | ||
June 1 | Balance b/d | 6 520 | Cr | ||
8 | Standing Order: Insurance | 500 | 6 020 | Cr | |
12 | Cheque deposit | 1850 | 7 870 | Cr | |
13 | Cheque no. 5200 | 1630 | 6 240 | Cr | |
17 | Direct Deposit : Rental income | 2400 | 8 640 | Cr | |
22 | Cheque no. 5202 | 1510 | 7 130 | Cr | |
23 | Cheque deposit | 800 | 7 930 | Cr | |
30 | 40 | 7 890 | Cr | ||
Unpaid cheque (deposited on 23 June) | 800 | 7 090 | Cr | ||
REQUIRED
a. Update the cash at bank account for the month of June 2020.
[6]
b. Prepare the bank reconciliation statement as at 30 June 2020.
[6]
c. Give two reasons why a business does bank reconciliations.
[2]
[TOTAL 14]
Bank Reconciliation is done to
- Locate errors which are cash at bank errors or bank errors
- Deter frauds
- Identify items that caused the differences between the cash at bank
account balance and bank statement balance.