THE INSTITUTE OF FINANCE MANAGEMENT
CODE NO. ACU 07101: Principles of Accounting
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BANK RECONCILIATION QNS
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Question One
The following cash book extract (Bank columns) of Enzi Zetu traders for Jan 2011
DR CASH BOOK CR
DATE DETAILS AMOUNT DATE DETAILS AMOUNT
1-Jan Balance b/d 400,000 4-Jan Mike cheque no 200 600,000
6 Cash 1,200,000 6 Jon D cheque n 201 400,000
8 Allen 800,000 8 Miriam cheque no 202 200,000
12 Cash 500,000 12 Habib cheque no 203 320,000
14 Steve 400,000 18 Robert cheque no 204 640,000
16 Warda 800,000 20 Karim cheque no 205 120,000
18 Cash 300,000 22 Abdul cheque no 206 180,000
20 Mai 400,000 24 Walter cheque no 207 160,000
22 Facta 240,000 26 Dulla cheque no 208 560,000
23 Cash 600,000 28 Danford cheque no 209 240,000
24 Cash 400,000 29 Twalib cheque no 210 420,000
25 Nandy 200,000
26 Daniella 500,000
27 Babu G 460,000
29 Joy 220,000
30 Leila 300,000 31 Balance c/d 3,880,000
7,720,000 7,720,000
BANK STATEMENT
DATE DETAILS DEBIT CREDIT BALANCE
1-Jan Balance b/d 400,000
6 Cash 1,200,000 1,600,000
6 Mike cheque no 200 600,000 1,000,000
7 Jon D cheque no 201 400,000 600,000
9 Allen 800,000 1,400,000
12 Cash 500,000 1,900,000
13 Miriam cheque no 202 200,000 1,700,000
14 Electricity bills 400,000 1,300,000
15 Cash from Lily 820,000 2,120,000
16 Habib cheque no 203 320,000 1,800,000
17 Steve 400,000 2,200,000
18 Robert cheque no 204 640,000 1,560,000
18 Warda 800,000 2,360,000
18 Cash 300,000 2,660,000
20 Mai 400,000 3,060,000
23 Abdul cheque no 206 180,000 2,880,000
23 cash 600,000 3,480,000
24 cash 400,000 3,880,000
26 Bank Charges 50,000 3,830,000
27 Daniella 500,000 4,330,000
28 Bank Charges 40,000 4,290,000
28 Dulla cheque no 208 560,000 3,730,000
28 Dishonoured cheque 720,000 3,010,000
29 Dividend from TOL 2,060,000 5,070,000
30 Insurance 460,000 4,610,000
31 Bank Charges 20,000 4,590,000
QUESTION TWO
Information of Collin Adventures’ bank reconciliation at June 30 is as follows
a) Cash book closing balance was debit balance of TZS 100,000
b) Deposits in transit at June 30 total TZS 280,000
c) There was unrecorded bank charge of TZS 15,000
d) Outstanding cheques total TZS 270,000
e) A TZS 96,000 cash sale was wrongly recorded as TZS 69,000
f) A TZS 490,000 payment to a supplier of canned goods was recorded in error as TZS 940,000
g) A TZS 125, 000 received from debtor was credited in the cash book.
Required
Prepare update Cash Book
QUESTION THREE
Use the following information to calculate the correct balance in the cash at bank account and balance
in the cash book before adjustment (or any update)
a) Cash at bank July 31 before adjustments TZS 118,400,000
b) Deposits in transit TZS 12,000,000
c) Unpresented cheques TZS 8,500,000
d) Unrecorded bank charges TZS 110,000
e) Cheque deposited No. 110 recorded as TZS 8,900,000 instead of TZS 9,800,000 by bank in the
bank statement
f) Credit transfer made by a customer of the company, TZS 50,000,000 not yet recorded in the
books
g) Direct debit of TZS 1,500,000 was credited by bank in the bank statement
{Hint: Answers correct bank balance = TZS 119,800,000 and cash book balance before
adjustment = TZS 69,910,000}
QUESTION FOUR
You are given the following information of REGINA traders for the month of January 2011
DR CASH BOOK CR
DATE DETAILS AMOUNT DATE DETAILS AMOUNT
1-Jan Balance b/d 1,400,000 4-Jan Faylum cheque no 300 1,000,000
6 Cash 1,200,000 6 Don cheque n 301 530,000
8 Meg 800,000 8 Shannel cheque no 302 200,000
12 Cash 500,000 12 Joshua cheque no 303 320,000
14 Biu 1,200,000 18 Robert cheque no 304 440,000
16 Norah 650,000 20 Mohd cheque no 305 240,000
18 Cash 310,000 22 Sakina cheque no 306 180,000
20 MaiGrory 520,000 24 Big cheque no 307 760,000
22 Neema 360,000 26 Mecky cheque no 308 560,000
23 Cash 600,000 28 Lisa cheque no 309 240,000
24 Cash 612,000 29 Warda cheque no 310 420,000
25 Cai 1,080,000
26 Merrylyn 640,000
27 Christine 720,000
29 Zahra 240,000
30 Bobby 560,000 31 Balance c/d 6,502,000
11,392,000 11,392,000
BANK STATEMENT
DATE DETAILS DEBIT CREDIT BALANCE
1-Jan Balance b/d 1,400,000
6 Cash 1,200,000 2,600,000
6 Norah 650,000 3,250,000
7 Joshua cheque no303 320,000 2,930,000
9 Biu 1,200,000 4,130,000
12 Cash 500,000 4,630,000
13 Mecky cheque no 308 560,000 4,070,000
14 Electricity bills 400,000 3,670,000
15 Interest Received 820,000 4,490,000
16 Shannel cheque no 302 200,000 4,290,000
17 MaiGrory 520,000 4,810,000
18 Robert cheque no 304 440,000 4,370,000
18 Zahra 240,000 4,610,000
18 Cash 310,000 4,920,000
20 Alissa 400,000 5,320,000
23 Sakina cheque no 306 180,000 5,140,000
23 cash 600,000 5,740,000
24 cash 612,000 6,352,000
26 Bank Charges 65,000 6,287,000
27 Bobby 560,000 6,847,000
28 Bank Charges 35,000 6,812,000
28 Big cheque no 307 760,000 6,052,000
28 Dishonoured cheque 720,000 5,332,000
29 Dividend from Kenya Air ways 2,060,000 7,392,000
30 Insurance 460,000 6,932,000
31 Bank Charges 40,000 6,892,000
You are required to:
1) Update the Cash Book
2) Prepare Bank reconciliation Statement as at 31/01/2011
Question FIVE
On 31st December 20x10 the Cash book of Smart Group showed a debit balance of 840,000
while Bank statement showed a credit balance of TZS 920,000. On checking the cash book with
the bank statement, the following transactions had been discovered.
a) Dividends receivable, amounts totaling TAS 1,060,000 have been credited direct to the
bank account. No entries made in the cash book.
b) A cheque received for TAS 320,000 had been returned by bank and marked “No funds
available” No adjustment had been made in the cash book
c) Cheques received totaling TZS 980,000 had been entered in the cash book and paid into
the bank, but had not been credited by the bank.
d) A Direct debit of TZS 240,000 for association membership subscription had been paid by
the bank.
e) Cheques drawn amounting to TZS 940,000 had not been presented to the bank for
payment.
f) The credit side of the cash book has been under casted by TAS 200,000.
g) Bank charges of TZS 180,000 entered on the bank statement had not been presented to
the bank for payment.
You are required to:
a) Update the Cash Book
b) Prepare a bank reconciliation statement as on 31st Dec 20x10
Question SIX
From the following particulars, find out the adjusted cash book balance and prepare thereafter,
the Bank Reconciliation Statement as on 31-12-2011.
i) Bank overdraft as per the Cash Book $ 80,000
ii) Cheque deposited as per bank statement but not entered in the Cash Book $ 3000
iii) Cheques received from customer but not sent to the Bank $ 10,000
iv) Credit side of the Bank Column cast short $ 1000
v) Insurance Premium paid direct by bank $ 5000
vi) Bank charges recorded twice in the Cash Book $ 100
vii) Cheques issued but dishonoured on technical grounds $ 3,000
viii) Receivable collected by the bank directly $ 20,000
ix) Cheque paid to suppliers but not sent to the bank for collection $ 5,000.
x) Cheque received entered twice in the Cash Book $ 2,000
Question SEVEN
On 30th Sept 20x12 the Cash book of Enzi Zetu Bwana wee acha tu! showed a credit balance of
720,000 while Bank statement showed a credit balance of TZS 200,000. On checking the cash
book with the bank statement, the following transactions had been discovered.
a) A cheque received for TAS 280,000 had been returned by bank and marked “No funds
available” No adjustment had been made in the cash book
b) Cheques received totaling TZS 300,000 had been entered in the cash book and paid into
the bank, but had not been credited by the bank.
c) A Direct debit of TZS 900,000 for association membership subscription paid by the bank
has been recorded twice in Cash Book.
d) Cheques drawn amounting to TZS 400, 000 had not been presented to the bank for
payment.
e) Bank Charges of TZS 10,000 has been recorded as TAS 100,000 in Cash Book.
f) The credit side of the cash book has been Overcastted by TAS 110,000.
You are required to:
a) Update the Cash Book
b) Prepare a bank reconciliation statement as on 30thSept 20x12
Question EIGHT
On 30th Sept 20x12 the Cash book of Silar traders showed a debit balance of TZS 600,000
while Bank statement showed a debit balance of TZS 400,000. On checking the cash book with
the bank statement, the following transactions had been discovered.
a) A Standing order to JB Insurance for TZS 60,000 has been recorded as TZS 600,000 in
cash book.
b) Cheques received totaling TZS 200,000 had been entered in the cash book and paid into
the bank, but had not been credited by the bank.
c) Bank interest receivable of TZS 260,000 has been paid to the bank but not recorded in
cash book.
d) Cheques drawn amounting to TZS 600, 000 had not been presented to the bank for
payment.
e) Bank Charges of TZS 100,000 has been recorded as TZS 40,000 in Cash Book.
f) The Debit side of the cash book has been Overcastted by TZS 2,140,000.
You are required to:
a) Update the Cash Book
b) Prepare a bank reconciliation statement as on 30thSept 20x12
QUESTION TEN
On 30th Sept 20x12 the Cash book of Deep Sea showed a credit balance of TZS 540,000 while
Bank statement showed a debit balance of TZS 2,000,000. On checking the cash book with the
bank statement, the following transactions had been discovered.
i) A Standing order to Century Insurance for TZS 400,000 has been recorded in a debit side
of cash book.
ii) Cheques received amounting TZS 300,000 had been entered in the cash book and
paid into the bank, but had not been credited by the bank.
iii) Bank interest receivable of TZS 80,000 has been recorded as TZS 800,000 in cash
book.
iv) Cheques drawn amounting to TZS 500, 000 had not been presented to the bank for
payment.
v) Bank Charges of TZS 200,000 has been recorded as TZS 20,000 in Cash Book.
vi) The Credit side of the cash book has been Over-casted by TZS 40,000.
You are required to:
a) Update the Cash Book
b) Prepare a bank reconciliation statement as on 30thSept 20x12
QUESTION ELEVEN
During an interim audit at 31st December 2016, you were instructed by your
boss to reconcile the bank balance shown in the books of accounts with the
balance shown in the bank statement. From the particulars, prepare a
reconciliation statement
⮚ Balance as per bank statement as at 31st Dec 2016 TZS
85,110,000 (Dr)
⮚ Cheques drawn as on 31st Dec 2016 but not cleared until January
2017:
Cheque No Amount in
TZS
C001 20,000,000
C012 15,190,000
C0211 14,300,00
C0111 35,620,000
⮚ Bank overdraft interest at 20 December 2016 not entered in the
th
Cash Book was TZS 1,257,000
⮚ Sum received on 30th December 2016 but not lodged in the bank
till 3rd January 2017 TZS 165,980,000.
⮚ A bank debit for TZS 50,000 being cost of cheque book in
November 2016 was entered in the cash book twice in error.
⮚ A bill receivable due on 29th December 2016 was passed to the
bank for collection on 28th December 2016 and was entered in
the cash book forthwith, whereas the proceeds of TZS
25,000,000 were not credited to the bank statement till 1 st
January 2017
⮚ Bill stamps amounting to TZS 31,000 had been debited in the
bank statement but no entries were made in the cash book
⮚ Dar es Salaam Chamber of Commerce subscription of TZS
5,000,000 paid by banker’s ordr on 1st Dec 2016 had not been
entered in the cash book.
QUESTION TWELVE
A Trading profit and loss account of Cailyn Company for the year ended 31 st
May 1991 showed a net profit of TZS 246,800,000. The balance at the bank
at 31st May 2017 according to the Cash Book was TZS 32,200,000
You are informed that
a) Cheques from customers, amounting to TZS 24,900,000 which
were entered in the cash book on 31st May, were not credited by
the bank until after June 2017.
b) Cheques written by Cailyn Co. on the 28th May in favor of
creditors, amounting to a total of TZS 37,100,000 were not paid
by the bank until after May 31st
c) On 15th May, Ngosha a customer had paid TZS 11,700,000 into
Cailyn’s Bank Account, in full settlement of a debit balance of
TZS 12,000,000 in Cailyn’s Debtor ledger. No entry had been
made in Cailyn Co books of this payment.
d) On 1st April 2017, the bank paid, in accordance with a standing
order from Cailyn TZS 18,000,000 for the rent of business
premises from where Cailyn operates. The payment was for the
three months to 30th June 2017. No entry fro this payment had
been made in the books,
e) A cheque for TZS 4,200,000 from Mami, a former customer had
been paid into the bank by Mami and credited by the bank on
20th May. Mami had lost his business some years ago and went
into a serious drinking problem. Cailyn had written off whatever
balance she owed to the company. Mami intends to revive her
business
f) On 30th May, a cheque for TZS 2,400,000 was received from a
customer in settlement of a sales invoice for TZS 2,400,000. The
cheque was paid into Cailyn’s bank, and both the sale of the
goods and the cheque were entered in the books. On May 31 st,
the customer returned the goods to Cailyn and instructed his
bank not to pay the cheque, but no entries in respect of these
matters have been made in the books. Morever, the returned
goods which cost TZS 1,600,000, were not included in Cailyn’s
closing stock.
You are Required:
a) To make all necessary corrections and adjustments in the
cash book and show the adjusted cash book balance as at 31 st
May
b) Prepare a statement reconciling the adjusted cash book
balance with the balance shown by the bank statement.