Bank reconciliation 3: June 2019 (Q1, adjusted) 3.1 Calculate the correct Bank Account balance on 31 May 2019. Provisional Bank balance R19 400 Accept alternative – 1 060 presentations such as Bank charges +313 Bank account or Interest on current a/c Receipts and Payment Theft of cash Correction EFT (6578 – 5678) – 31 560 columns + 900 – 12 007 Correct Bank balance -1 Foreign items, max -2 if mark is earned in BRS One part correct 8 Favourable/Unfavourable: Unfavourable See calculation above 3.2 Bank Reconciliation Statement on 31 May 2019 Balance as per Bank Statement Alternative (5 050) DEBIT 5 050 CREDIT Balancing figure Outstanding deposit 21 343 21 343 Outstanding EFTs: 705 (9 450) (14 350) (4 500) (12 007) 797 Debit deposit erroneously credited Balance as per bank account 9 450 14 350 4 500 12 007 See 3.1 both totals Check operation -1 Foreign items, max -2 if marked is earned in bank calculation above 3.3 33 350 33 350 8 State TWO internal control measures that the business can use to ensure that this will not happen in the future. Possible responses for two marks: Part marks for partially correct answer • • • • Encourage debtors to use EFTs and internet banking. Get other people to handle matters concerning cash (Division of duties/ Rotation of duties) SMS notifications from the bank for all transactions. Use security companies to collect/transit the money TOTAL MARKS 20 4