Tutorial 10 Bank Reconciliation Statement 1 LTJ 2022

Tutorial 10: Bank Reconciliation Statements Abbreviations

BCE = Balance SO = Standing Order
Section A TRF = Transfer CR = Credit/Deposit
DD = Direct Debit INT = Interest
Question 1
The Cash Book (Bank column) for the month of April 2018 was as follows:
In early May 2021, Superb Trading received a statement from the bank for the
month of April 2021, as shown below: Cash Book (Bank column)
Apr RM Apr Chq. No. RM
Statement of Account with Maybank Bhd for the month of April 2021
1 Balance b/d 2,669.10 3 Maxx Bhd 32516 250.80
April Description Debit Credit Balance
1 Stylo Co. 534.00 4 Jeff Trading 32517 317.20
RM RM RM
1 Emerge Ltd 628.50 8 Besto Ltd 32518 1,218.60
1 BCE 5,773,40
2 Hot Tea Bhd 187.60 9 Lucky Trading 32519 13,742.90
2 Cheque No:32515 851.60 4,921.80
15 Chin Hup Fatt 17,934.80 11 Loan interest 100.80
5 Cheque No:32514 1,003.40 3,918.40
20 Mann Motors 24,043.70 (March 2021)
8 Cheque No:32516 250.80 3,667.60
24 Luther Trading 4,181.20 13 Ace Trading 32520 103.50
12 DD (Max Insurance) 262.60 3,405.00
25 Chan & Chan 3,695.70 20 Zess Deco 32521 6,421.30
13 CR Deposits 17,934.80 21,339.80
24 Next Trading DD 320.00
13 Cheque No:32518 1,218.60 20,121.20
26 Harrier Trading 32522 904.40
15 Cheque No:32519 13,742.90 6,378.30
27 Salaries TRF 9,406.00
18 Cheque No:32517 317.20 6,061.10
28 Stationery 32523 43.00
22 DD (Indah Water) 320.00 5,741.10
30 Balance c/d 21,046.10
22 CR Deposits 24,043.70 29,784.80
53,874.60 53,874.60
23 Cheque No:32520 103.50 29,681.30
May
26 SO 1,235.70 28,445.60
1 Balance b/d 21,046.10
27 CR Deposits 7,876.90 36,322.50
28 TRF 9,406.00 26,916.50 Required:
29 INT (Loan account) 111.90 26,804.60
30 Bank charges 73.70 26,730.90 (a) Reconcile the opening balances of the Cash Book and the Bank Statement.
30 Cheque No:32521 6,421.30 20,309.60
(b) Adjust the Cash Book and prepare a Bank Reconciliation Statement as at
30 BCE 20,309.60
30 April 2021.

Question 2
 Tutorial 10 Bank Reconciliation Statement 2 LTJ 2022

Cash Book (bank columns only)

Mr Thana provides the following information for the month of October 2021: 2021 RM 2021 Chq. No. RM
Bank Statement as at 31 October 2021
Debit Credit Balance Oct 1 Balance b/d 1,778.16 Oct 7 Purchases 802328 283.40
Date Description 2 Roland Lim 984.70 Electricity 802329 287.64
RM RM RM
01.10.2021 BAL 2,229.98 14 Sales 699.00 10 Purchases 802330 175.54
03.10.2021 CLR CHQ 802327 421.40 1,808.58 19 Sales 688.40 13 Rental 802331 60.00
06.10.2021 CR 984.70 2,793.28 29 Donny & Co 385.60 14 Travelling 802332 118.18
31 Sales 400.00 18 Salaries 802333 762.36
06.10.2021 CLR CHQ 802326 30.42 2,672.86
28 Purchases 802334 104.54
07.10.2021 CHG 25.60 2,737.26
29 Rates 802335 340.00
09.10.2021 CLR CHQ 802329 287.64 2,449.62
31 Balance c/d 2,804.20
10.10.2021 SO 38.94 2,410.68 4,935.86 4,935.86
12.10.2021 CLR CHQ 802328 283.40 2,127.28 Nov 1 Balance b/d 2,804.20
13.10.2021 DD 65.04 2,062.24
14.10.2021 CR 699.00 2,761.24
Required:
14.10.2021 CLR CHQ 802330 155.74 2,605.50
16.10.2021 CLR CHQ 802332 118.18 2,487.32 (a) Show how the opening balances will be reconciled.
18.10.2021 CR 42.94 2,530.26 (b) Update the Cash Book where necessary.
19.10.2021 CR 688.40 3,218.66
20.10.2021 CLR CHQ 802333 762.36 2,456.30 (c) Prepare a Bank Reconciliation Statement for Mr Thana as at 31 October
2021.
31.10.2021 BAL 2,456.30

Abbreviations: 3. Explain the purpose of preparing bank reconciliation statements.

BAL = Balance; CHG = Charges; CLR CHQ = Clearing cheque;
CR = Credit; DD = Direct Debit; SO = Standing Order
 Tutorial 10 Bank Reconciliation Statement 3 LTJ 2022

Extra exercise questions (for students’ own practice)

Question 1 Question 2

The Cash Book and the Bank Statement of Excellent Enterprise for September The following is the Cash Book (bank columns only) of Pyramid Enterprise for
2021 are as follows: the month of July 2021:

Cash Book Cash Book

2021 RM 2021 RM 2021 RM 2021 RM
Sep 1 Balance b/d 6,816 Sep 6 Chatles 450 Jul 5 Jason 310 Jul 1 Balance b/d 8,311
8 Summit Ltd 474 13 Jack Trading 1,299 19 Champion Bhd 378 9 Subang medical 412
17 Alex Loh 279 17 Frontway Bhd 264 30 Landfill Ltd 422 18 Ban Enterprise 630
26 Maxim Sdn Bhd 921 27 Cahaya Trading 171 31 Balance c/d 8,411 28 Popular Book Store 168
29 Next Enterprise 1,872 30 Balance c/d 8,178 9,521 9,521
10,362 10,362 Aug 1 Balance b/d 8,411
Oct 1 Balance b/d 8,178
The Bank Statement as at 31 July 2021 is as follows:
Bank Statement as at 30 September 2021
Dr Cr Balance Dr Cr Balance
2021 RM RM RM 2021 RM RM RM
Sep 1 Balance b/f 6,816 Jul 1 Balance b/d 8,311 O/D
8 Deposit 474 7,290 6 Deposit: Jason 310 8,001 O/D
9 Cheque 450 6,840 12 Cheque: Subang medical 412 8,413 O/D
17 Deposit 279 7,119 19 Deposit: Champion Bhd 378 8,035 O/D
18 Cheque 1,299 5,820 21 Ban Enterprise 630 8,665 O/D
19 Cheque 264 5,556 25 Pacific Insurans Co 400 9,065 O/D
26 Deposit 921 6,477 28 Credit transfer: Kanvas Ltd 360 8,705 O/D
27 Standing order 132 6,345 31 Bank charges 130 8,835 O/D
29 Credit transfer 270 6,615
30 Bank charges 210 6,405
Required:

Required: (a) Write up the Cash Book up-to-date to take the necessary items into
account.
(a) Write up the Cash Book up-to-date to take the above into account.
(b) Draw up a Bank Reconciliation Statement for Pyramid Enterprise as at 31
(b) Draw up a Bank Reconciliation Statement as at 30 September 2021. July 2021.
 Tutorial 10 Bank Reconciliation Statement 4 LTJ 2022

Question 3

The following are the Bank Statement and Cash Book of McBowel Sdn Bhd.
Both are extracted from the month of September 2021.
Cash Book (bank columns only)
Bank Statement as at 30 September 2021 2021 RM 2021 Chq. No. RM
Date Debit Credit Balance
Sept 1 Balance b/d 1,539 Sept 4 Aman & Co 8533 300
Sept RM RM RM 3 Raja Co 4,890 10 Travelling 8534 3,240
01 Balance b/f 2,169 4 Sales 208,200 14 Purchases 8535 156,090
Credit Transfer 390 2,559 9 Fixture 9,150 26 Rental 8536 1,530
02 Cheque No: 8531 1,020 1,539 28 Omar Trading 1,170 28 Salaries 8537 3,000
03 Giro credit: Raja Co 4,890 6,429 29 Purchases 8538 30,150
30 Balance c/d 30,639
04 Deposit 208,200 214,629
224,949 224,949
Cheque No: 8533 300 214,329
Oct 1 Balance b/d 30,639
09 Credit transfer 9,150 223,479
10 Cheque No: 8534 3,240 220,239
14 Cheque No: 8535 156,090 64,149
Required:
26 Cheque No: 8536 1,530 62,619
28 Credit transfer 1,020 63,639 (a) Update the Cash Book for the month of September 2021.
29 Interest charges 120 63,759
(b) Reconcile the difference between the updated Cash Book and the balance in
30 Service charges 150 63,609 the Bank Statement as at 30 September 2021.
Credit transfer 3,900 67,509