Question
You are the accountant for ColourfulPollies Flower Shop. You are required to complete the bank reconciliation for the business for the month ended 30 April 2012. The bank reconciliation for March 2012 is as follows:
|
ColourfulPollies Flower Shop
Bank Reconciliation
as at 31 March 2012
|
|
|
Balance per bank statement 31 March 2012
|
$4634.58 Cr
|
|
ADD: Outstanding deposit
|
432.67
|
|
|
5067.25
|
|
LESS: UnpresentedCheques
Cheque No 5467 $67.35
5468 134.89
5470 287.34
|
489.58
|
|
Balance per Cash at Bank account as at 31 March 2012
|
$4577.67Dr
|
Abridged cash receipts and cash payments journal are shown below. Both journals have been finalised and posted to the general ledger account as at 30 April 2012.
|
Cash Payments Journal
|
|
Date
|
Account
|
Cheque no.
|
Cash at Bank
|
|
2012
|
|
|
|
|
Apr-01
|
White Ltd
|
5471
|
345.67
|
|
2
|
Blue Ltd
|
5472
|
189.60
|
|
4
|
Wages and salaries
|
5473
|
880.00
|
|
5
|
Petty cash
|
5474
|
54.65
|
|
D. Red
|
5475
|
125.60
|
|
8
|
Tan & Sons
|
5476
|
54.90
|
|
9
|
Calpol Petrol
|
5477
|
95.00
|
|
Accommodation
|
5478
|
235.40
|
|
11
|
Green & Partner
|
5479
|
584.30
|
|
12
|
Electricity Ltd
|
5480
|
720.89
|
|
15
|
Big Gas Corporation
|
5481
|
220.54
|
|
Telephone Company
|
5482
|
325.90
|
|
17
|
Advertising
|
5483
|
220.00
|
|
18
|
Wages and salaries
|
5484
|
880.00
|
|
19
|
Donation - Blue Cross
|
5485
|
50.00
|
|
22
|
Freight
|
5486
|
80.00
|
|
24
|
Purchases
|
5487
|
2 080.90
|
|
25
|
Calpol Petrol
|
5488
|
56.80
|
|
26
|
R Vermillion
|
5489
|
125.00
|
|
29
|
Petty Cash
|
5490
|
42.05
|
|
30
|
T Crimson
|
5491
|
38.70
|
|
|
|
|
7 405.90
|
|
|
|
|
|
|
Cash Receipts Journal
|
|
|
Date
|
Account
|
Cash at Bank
|
|
|
2012
|
|
|
|
|
Apr-01
|
Sales
|
599.54
|
|
|
2
|
G Whitlam
|
56.98
|
|
|
|
Sales
|
515.90
|
|
|
4
|
P. Gorton
|
64.00
|
|
|
|
Sales
|
602.78
|
|
|
5
|
Sales
|
548.70
|
|
|
8
|
B Hawke
|
98.00
|
|
|
|
J Howard
|
45.68
|
|
|
|
Sales
|
555.60
|
|
|
9
|
Sales
|
525.00
|
|
|
12
|
P Keating
|
34.65
|
|
|
|
Sales
|
502.40
|
|
|
15
|
Sales
|
519.56
|
|
|
17
|
B McMahon
|
35.40
|
|
|
|
G Whitlam
|
22.20
|
|
|
|
Sales
|
440.86
|
|
|
19
|
P Keating - dishonored cheque
|
-34.65
|
|
|
|
Sales
|
498.90
|
|
|
22
|
Sales
|
548.65
|
|
|
26
|
B Sneddon
|
34.50
|
|
|
|
Sales
|
536.00
|
|
|
29
|
Sales
|
506.80
|
|
|
30
|
Sales
|
480.65
|
|
|
|
|
7738.10
|
|
|
|
|
|
|
|
ColourfulPollies
|
|
Bank Statement for 31 March 2012 - 30 April 2012
|
|
|
|
|
|
|
|
Date
|
Particulars
|
Debit
|
Credit
|
Balance
|
|
|
2012
|
|
|
|
|
|
|
Apr-01
|
Balance
|
|
|
4,634.58
|
CR
|
|
2
|
5468
|
134.89
|
|
4,499.69
|
CR
|
|
Deposit
|
|
432.67
|
4,932.36
|
CR
|
|
Deposit
|
|
599.54
|
5,531.90
|
CR
|
|
3
|
Deposit
|
|
572.88
|
6,104.78
|
CR
|
|
4
|
Term Deposit maturing
|
|
10,527.10
|
16,631.88
|
CR
|
|
5471
|
345.67
|
|
16,286.21
|
CR
|
|
5472
|
189.60
|
|
16,096.61
|
CR
|
|
5473
|
880.00
|
|
15,216.61
|
CR
|
|
Deposit
|
|
666.78
|
15,883.39
|
CR
|
|
5
|
5474
|
54.65
|
|
15,828.74
|
CR
|
|
Deposit
|
|
548.70
|
16,377.44
|
CR
|
|
6
|
5470
|
287.34
|
|
16,090.10
|
CR
|
|
8
|
Deposit
|
|
699.28
|
16,789.38
|
CR
|
|
9
|
5477
|
95.00
|
|
16,694.38
|
CR
|
|
Deposit
|
|
525.00
|
17,219.38
|
CR
|
|
10
|
Term Deposit invested
|
15,000.00
|
|
2,219.38
|
CR
|
|
12
|
5475
|
125.60
|
|
2,093.78
|
CR
|
|
5478
|
235.40
|
|
1,858.38
|
CR
|
|
Returned Cheque
|
98.00
|
|
1,760.38
|
CR
|
|
Deposit
|
|
537.05
|
2,297.43
|
CR
|
|
15
|
5479
|
584.30
|
|
1,713.13
|
CR
|
|
5476
|
54.90
|
|
1,658.23
|
CR
|
|
5481
|
220.54
|
|
1,437.69
|
CR
|
|
Deposit
|
|
519.56
|
1,957.25
|
CR
|
|
17
|
5482
|
325.90
|
|
1,631.35
|
CR
|
|
5479
|
584.30
|
|
1,047.05
|
CR
|
|
Deposit
|
|
498.46
|
1,545.51
|
CR
|
|
18
|
5484
|
880.00
|
|
665.51
|
CR
|
|
|
|
|
|
|
|
|
19
|
5480
|
720.89
|
|
55.38
|
DR
|
|
|
|
|
|
|
|
|
5483
|
230.00
|
|
285.38
|
DR
|
|
Deposit
|
|
498.90
|
213.52
|
CR
|
|
Returned Cheque
|
34.65
|
|
178.87
|
CR
|
|
22
|
5486
|
80.00
|
|
98.87
|
CR
|
|
Deposit
|
|
548.65
|
647.52
|
CR
|
|
26
|
5485
|
50.00
|
|
597.52
|
CR
|
|
|
|
|
|
|
|
|
5487
|
2,080.90
|
|
1,483.38
|
DR
|
|
|
|
|
|
|
|
|
Deposit
|
|
570.50
|
912.88
|
DR
|
|
|
|
|
|
|
|
|
29
|
5488
|
56.80
|
|
969.68
|
DR
|
|
|
|
|
|
|
|
|
5490
|
42.05
|
|
1,011.73
|
DR
|
|
|
|
|
|
|
|
|
30
|
Deposit
|
|
506.80
|
504.93
|
DR
|
|
|
|
|
|
|
|
|
Bank Charges
|
60.00
|
|
564.93
|
DR
|
|
|
|
|
|
|
|
|
Interest Paid
|
8.00
|
|
572.93
|
DR
|
|
TOTAL
|
23,459.38
|
18,251.87
|
|
|
|
|
|
|
|
|
The following is a copy of the bank statement for the month of April 2012.
Additional information:
- Cheque No 5483 - the invoice amount from the Sydney Morning Herald was for $230
- 4 April - A term deposit matured and was deposited directly to the bank account. The amount included interest of $527.10
- 10 April - A new term deposit commenced for $15 000 for a term of 6 months
Required:
1) The final totals from the Cash Receipts and Cash Payments Journals have been posted to the General Ledger account for Cash at Bank, prepare any journal entries required to reconcile the bank statements to the general ledger at 30 April 2012. Narrations are required.
2) Prepare the general ledger account for Cash at Bank (in T-account format) showing the final account balance as at 30 April 2012.
3) Prepare the bank reconciliation statement as at 30 April 2012.
4) With the completion of the bank reconciliation, outlinethree conclusions can be drawn regarding controls over cash and the usefulness of preparing a bank reconciliation.