Tutorial 9 (Week beginning 23th September 2019)

Topic 8: Special journals and control accounts as a lead-in to cash

management (bank reconciliation)

SOLUTIONS TO HOMEWORK QUESTIONS

1. BE6.5 (p. 397)

(a) Cash receipts journal

(b) Cash payments journal
(c) Cash payments journal
(d) Sales journal
(e) Purchases journal
(f) Cash receipts journal

2. PSA6.1 (p. 404)

Computer Supplies Ltd

(a)
Cash Receipts Journal
CR4
Discount Accounts Other Cost of Sales Dr
Date Account Credited Ref Cash Dr Allowed Receivable Cr Sales Accounts Inventory Cr
Dr Cr Cr

Apr. 1 S Wiggle, Capital 301 18,000 18,000

4 Computer for U √ 4,998 102 5,100
5 PC West Ltd √ 1,860 1,860
8 Cash Sales 21,736 21,736 13,040
10 East PC Ltd √ 2,400 2,400
11 Inventory 120 1,650 1,650
23 PC West Ltd √ 4,500 4,500
29 Office Supplies √ 3,600 3,600
58,744 102 17,460 21,736 19,650 13,040

Cross-footing Totals $71,886

Dr Total = $71,886 ($58,744 + $102 + $13,040)
Cr Total = $71,886 ($17,460 + $21,736 + $19,650 + $13,040)

(b)

General Ledger
Accounts Receivable
Date Explanation Ref. Debit Credit Balance

Apr. 1 Balance 22,050

30 CR4 17,460 4,590
 Accounts Receivable Subsidiary Ledger

East PC Ltd
Date Explanation Ref. Debit Credit Balance

Apr. 1 Balance 4,650

10 CR4 2,400 2,250

Office Supplies Ltd

Date Explanation Ref. Debit Credit Balance

Apr. 1 Balance 3,600

29 CR4 3,600 0

PC West Ltd
Date Explanation Ref. Debit Credit Balance

Apr. 1 Balance 8,700

5 CR4 1,860 6,840
23 CR4 4,500 2,340

Computers for U Ltd

Date Explanation Ref. Debit Credit Balance

Apr. 1 Balance 5,100

4 CR4 5,100 0

(c) Accounts receivable balance $4,590

Accounts Receivable subsidiary account balances:

East PC Ltd $2,550
PC West Ltd 2,340
Total $4,590
3. Q7.7 (p. 480)

(a) A dishonoured cheque occurs when the bank on which the cheque is drawn
refuses to pay the cheque, because it has been cancelled or because the balance of
the account on which it is drawn is less than the amount of the cheque.
(b) It reduced the balance of the bank account reported on the bank statement.
The dishonoured cheque should be recorded in the Cash at Bank account. It does not
appear in the bank reconciliation statement.
(c) A dishonoured cheque should be entered into the cash receipts as a reduction
in cash receipts. The adjusting entry in the company’s ledger accounts is a debit to
Accounts Receivable and a credit to Cash.

4. The following information is provided for Southern Cross Cricketers Ltd:

Southern Cross Cricketers Ltd

Bank Reconciliation as at 31 May 2019

Cash balance per bank statement 4,817.00 Cr

Add Deposits not credited 284.00
5,101.00
Less Unpresented cheques:
506 161.00
509 220.00 (381.00)
Balance per cash at bank ledger account 4,720.00 Dr

CASH PAYMENTS JOURNAL

Date Name Chq. Bank

No.
2019 CR

Jun Car 510 1,000

4
4 D.H.A 511 26
9 D. Grace 512 87
19 C. Goode 513 260
10 Investments 514 1,908
15 Wages 515 150
18 Petrol 516 97
20 Drawings 517 20
 29 Oil 518 16
30 Wages 519 150
30 D. Grace 520 115

CASH RECEIPTS JOURNAL

Date Name Rec. No. Bank

2019 DR

Jun 1 Capital 16 500

5 V. Daly 17 39
5 Fees 18-56 1247
12 Fees 57-85 1537
16 G. 86 68
Press
30 Int. Rev. Voucher 29 52

SOUTHERN CROSS CRICKETERS LTD

BANK STATEMENT
DR CR BALANCE
June
1 4,817.00CR
1 C/C 284.00 5,101.00CR
2 State Duty 1.00 5,100.00CR
2 Federal Duty 3.00 5,097.00CR
2 C/C 500.00 5,597.00CR
3 506 161.00 5,436.00CR
6 C/c 1,286.00 6,722.00CR
7 Fee 5.00 6,717.00CR
8 510 1,000.00 5,717.00CR
13 C/C 1,537.00 7,254.00CR
14 512 87.00 7,167.00CR
14 513 260.00 6,907.00CR
17 C/C 68.00 6,975.00CR
17 514 1,908.00 5,067.00CR
18 515 150.00 4,917.00CR
 21 517 20.00 4,897.00CR
22 511 26.00 4,871.00CR
30 Citicorp Int 20.00 4,891.00CR
Direct Payment

Required:
(a) Prepare the Cash at Bank ledger account showing the final balance at 30 June 2019.
(b) Prepare the bank reconciliation as at 30 June 2019.

(a)

CASH PAYMENTS JOURNAL

Date Name Chq. Bank

No.
2019 CR

Jun Car 510 1,000

4
4 D.H.A 511 26
9 D. Grace 512 87
19 C. Goode 513 260
10 Investments 514 1,908
15 Wages 515 150
18 Petrol 516 97
20 Drawings 517 20
29 Oil 518 16
30 Wages 519 150
30 D. Grace 520 115
Progress total 3,829
State duty 1
Federal duty 3
Fee 5
Total 3,838
 CASH RECEIPTS JOURNAL

Date Name Rec. No. Bank

2019 DR

Jun 1 Capital 16 500

5 V. Daly 17 39
5 Fees 18-56 1,247
12 Fees 57-85 1,537
16 G. Press 86 68
30 Int. Rev. Voucher 52
29
Progress 3,443
total
Interest 20
Total 3,463

Date 2016 Details $ Date Details $

2016
1 June O/balance 4,720 30 June Payments 3,838
30 June Receipts 3,463 C/balance 4,345
8,183 8,183
O/balance 4,345

(b)

Southern Cross Cricketers Ltd

Bank Reconciliation as at 30 June 2019

Cash balance per bank statement 4,891.00 Cr

Add Deposits not credited 52.00
4,943.00
Less Unpresented cheques:
509 220.00
516 97.00
518 16.00
519 150.00
520 115.00 (598.00)
Balance per cash at bank ledger account 4,345.00 Dr
 5. Brash Limited prepares a bank reconciliation twice a month. The following information
relates to the fortnight ending 15 June 2019.

Brash Ltd. Bank Reconciliation Statement as at 31 May 2019

Balance as per Bank Statement 2,918 CR
Add: deposit not credited 600
3, 518
Less: Unpresented cheques/debits
Chq No. 287 8,000
Chq No. 288 800 8,800
Balance as per Bank Ledger account (CR) 5,282

Stellar Bank: Bank Statement: Account: Brash Ltd. 15 June 2019

Date Particulars Debits Credits Balance DR/CR
1-Jun Balance 2,918 CR
Ch287 8,000 5,082 DR
Deposit 600 4,482 DR
6-Jun Deposit 1,602 2,880 DR
Bank fees 54 2,934 DR
14-Jun Ch290 180 3,114 DR
Deposit 846 2,268 DR
15-Jun Ch291 90 2,358 DR
Chq returned: Dishon’d 1,602 3,960 DR
Interest 360 3,600 DR

Cash Receipts Journal

Date Particulars Rec # Details Bank
6-Jun J Gerrand 82 1,602 1,602
14-Jun Sales 83 864 864
15-Jun J Webster 84 396
Sales 85 1,188 1,584
Progress Total 4,050

Cash Payments Journal

Date Particulars Chq # Bank
 13-Jun Wages 290 180
Council Rates 291 90
15-Jun F Crowe 292 558
Progress Total 828

General Ledger

Date Details $ Date Details $

Note: Assume that all cash journal entries to 15 June are correct.
Required:
(a) Complete and post both cash receipt and cash payment journals above.
(b) Prepare the bank ledger account above to show how it would appear after cash
journals have been posted on 15 June.
(c) Prepare a Bank Reconciliation Statement at 15 June 2019.

(a)

Cash Receipts Journal

Date Particulars Rec # Details Bank
6-Jun J Gerrand 82 1,602 1,602
14-Jun Sales 83 864 864
15-Jun J Webster 84 396
Sales 85 1,188 1,584
Progress Total 4,050
J Gerrand (Dishon) (1,602)
Interest revenue 360
Total 2,808
Cash Payments Journal
Date Particulars Chq # Bank
13-Jun Wages 290 180
Council Rates 291 90
15-Jun F Crowe 292 558
Progress Total 828
Bank charges 54
Total 882

(b)

Date Details $ Date 2019 Details $

2019
15 June Receipts 2,808 June 1 O/balance 5,282
C/balance 3,356 June 15 Payments 882
6,164 6,164
O/balance 3,356

(c)

Brash Ltd. Bank Reconciliation Statement as at 15 June 2019

Balance as per Bank Statement 3,600 DR

Less Bank error: deposit under entered 18
Balance as per Bank Statement (adjusted) 3,582 DR

Add Unpresented cheques

Chq No. 288 800
Chq No. 292 558 1,358
4,940
Less Deposits not credited (396+1188) 1,584
Balance as per Bank Ledger account 3,356 CR