SAMPLE – Q&A BANK RECONCILIATION

EXAMPLE [OCT2016 Amended]:

The following information is taken from the Bank Account of Ammar Enterprise for the month of DEC
2020:

CASH RECEIPTS JOURNAL

DATE REF BANK (RM)
DEC
7 Siti Maju Enterprise 583107 4,500
19 Ummi Trading 678910 2,800
20 Mazlan Trading 456321 1,300

CASH PAYMENTS JOURNAL

DATE REF BANK (RM)
DEC
3 Omizuma Enterprise 825123 2,030
6 Hassan Trading 254108 1,250
10 Insurance premium 254109 550
12 Muslim Trading 254110 780
15 Tarifa Enterprise 254111 950
29 Rental 254112 700

BERJAYA BANK BERHAD

Bank Statement as at 31 December 2020
DATE PARTICULAR DEBIT CREDIT BALANCE
RM RM RM
DEC
1 Balance b/d (3,385) DR
6 Cheque no 254108 1,250 (4,635) DR
7 Cheque clearance - 825123 2,030 (2,605) DR
9 Standing order 500 (3,105) DR
11 Credit transfer 250 (2,855) DR
12 Cheque clearance - 583107 4,500 1,645 CR
16 Cheque clearance - 605125 5,000 6,645 CR
19 Debit advice 270 6,375 CR
20 Cheque deposit - 678910 2,800 9,175 CR
20 Cheque no 254109 550 8,625 CR
23 Cheque returned - 678910 2,800 5,825 CR
29 Cheque no 254112 770 5,055 CR
31 Bank charges 100 4,955 CR

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 SAMPLE – Q&A BANK RECONCILIATION

Additional information:
1. The bank account in the business’s books of Ammar Enterprise on 1 December 2020 was RM3,385
credit balance.

2. Total rental paid for December 2020 was RM770.

3. The cheque received from Omizuma Enterprise was wrongly recorded in business’s books.

4. Berjaya Bank Berhad confirmed that cheque no. 605125 does not belong to Ammar Enterprise.

Prepare a Bank Reconciliation Statement for the month of December 2020.

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 SAMPLE – Q&A BANK RECONCILIATION

PREPARATION OF BANK RECONCILIATION STATEMENT

STEP 1
Compare items in Cash Receipts Journal with items in CREDIT column of bank statement.
Tick (highlighted in yellow) for items that had been recorded in both Cash Receipts Journal and bank
statement.

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 SAMPLE – Q&A BANK RECONCILIATION

STEP 2
Compare items in Cash Payments Journal with items in DEBIT column of bank statement.
Tick (highlighted in blue) for items that had been recorded in both Cash Payments Journal and bank
statement.

Rent paid (RM770),

correctly recorded

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 SAMPLE – Q&A BANK RECONCILIATION

STEP 3
Identify for any errors – errors made by bank or by business.

Additional information:

Receipts recorded
as payment. Error
made by the
business.

Error made by the

business. The
correct amount is
RM770.

Error made by the Bank

(Berjaya Bank Berhad). Bank
had recorded it as receipts.
Additional Info no 4.

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 SAMPLE – Q&A BANK RECONCILIATION

STEP 4
Record all online transactions [receipts (purple) and payments (green)] and any charges by bank in
bank reconciliation statement.

STEP 5

Identify uncredited cheques and unpresented cheques.

Uncredited cheque.
The cheque has not
yet been processed
by the bank.

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 SAMPLE – Q&A BANK RECONCILIATION

Unpresented
cheque.
These cheques were
issued by the
business for payment
but did not appear in
bank statement. The
cheque holders did
not present the
cheques to the bank
for cash.

STEP 6
Prepare the Bank Reconciliation Statement.

AMMAR ENTERPRISE
Bank Reconciliation Statement as at 31 December 2020
Balance as per bank statement 4,955
add: uncredited cheque - Mazlan Trading (456321) 1,300

less: Error - cheque no. 605125 (5,000)

Unpresented cheque - Muslim Trading (254110) (780)
Unpresented cheque - Tarifa Enterprise (254111) (950)
Adjusted balance as per bank (475)

Balance as per book [(3,385) bal b/d + 8,600 receipts - 6,260 payments] (1,045)
add: error - Omizuma Enterprise (825123) 4,060
The total
Credit transfer 250
must be
the same
less: Standing order (500) amount
Debit advice (270)
Bank charges (100)
Cheque returned - dishonored cheque (678910) (2,800)
error - rental (254112) (70)
Adjusted balance as per book (475)

Info No. 1 Total payments in Cash

Total receipts in Cash Payment Journal
Opening balance in bank ac in
Receipts Journal
general ledger is negative
balance. 7