Formative Assessment 7 US 11241

• Compare the bank statement with the cash journals and make the necessary supplementary entries in the CRJ and CPJ.
• Post it to the bank account in the general ledger
• Prepare the bank reconciliation statement.

Note: Only the bank columns of the CRJ and CPJ are given.

Cash receipts journal of In Touch Stores May 200…:

Cash payments journal of In Touch Stores May 200…

Notes:

The bank statement shows all the amounts in one column, where credits to the bank account are indicated with a cr.  All other amounts are debits to the account.

Abbreviations:

• DO debit order
• LV Government Levy
• LF ledger fees
• CU cheque unpaid
• SF service fees
• IN Interest

The stop order in favour of Sanlam is for insurance

The unpaid (dishonoured) cheque was received from A. Small

1. Sithole made a deposit of R800 for rent

The account balance at the beginning of the month was R1000

• As explained above, compare the CRJ with the credits and the CPJ with the debits of the bank statement.
• Circle all amounts that do not agree
• Make supplementary entries in the CRJ and the CPJ for the circled amounts
• Draw up the bank account in the general ledger with the new totals from the CRJ and CPJ
• Prepare the bank reconciliation statement from the circled amounts in the CRJ and CPJ