Topic 7 – Cash management and control

Lecture Illustrations

1. Bank Reconciliation

As accountant for Pampered Pets, you are required to prepare a bank reconciliation at the
end of June. The bank reconciliation for May is set out below.

Pampered Pets
Bank Reconciliation Statement, 31 May

Balance as per bank statement, 31 May, $19 CR

Plus unrecorded deposit 56
75
Less unpresented cheques
Cheque. No. 264 $200 200

Adjusted Bank Statement Balance (125) DR

agrees to
Balance as per Cash at Bank account (125) CR

Abridged Cash Receipts and Cash Payments journals before finalisation and posting are
set out below:

Cash Receipts Journal

June Cash at Bank
2 B. Simpson $ 90
9 Cash sales 165
9 W. Stanley 320
10 Capital 1,100
12 R. Ramjet 95
14 Cash sales 270
18 W.Groom 30
20 J. Harvey 410
24 Cash sales 380
25 Cash Sales 132
27 Commission 550
30 B.Simpson 45
3,587

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 Cash Payments Journal
June Cheque No. Cash at Bank
3 W. Johnson 273 120
6 Rent 274 1,340
9 Salaries 275 500
12 S. V. Spry 276 205
14 Advertising 277 440
15 Cash purchases 278 99
17 Salaries 279 500
19 Cash purchases 280 390
20 R. Bullwinkle 281 740
21 K. Stewart 282 460
24 Salaries 283 500
25 Stationery 284 88
28 D. Hammond 285 620
29 P. L. Wholesales 286 710
30 Telephone expenses 287 360
7,072

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 Metro Bank
Statement Pampered Pets
Date: 30 June
Page No. 93

Date DR CR Balance

June 1 Balance b/fwd. 19 Cr

2 Deposit 56 75 Cr
3 Interest 15 60 Cr
Deposit 90 150 Cr
5 Cheque no 273 120 30 Cr
9 Deposit 485 515 Cr
Cheque no.274 1,340 825 Dr
10 Deposit 1,100 275 Cr
11 Cheque no 275 500 225 Dr
12 Deposit 95 130 Dr
14 Cheque no.276 205 335 Dr
Deposit 270 65 Dr
15 Dishonoured Cheque (B. Simpson) 90 155 Dr
16 Cheque no.278 99 254 Dr
17 Cheque no 279 500 754 Dr
19 Deposit 30 724 Dr
20 Cheque no.280 390 1,114 Dr
21 Deposit 410 704 Dr
Cheque book 10 714 Dr
22 Cheque no.277 440 1,154 Dr
24 Deposit 380 774 Dr
25 Deposit 132 642 Dr
25 Cheque 283 500 1,142 Dr
26 Cheque no.282 460 1,602 Dr
28 Direct Credit (Bills Receivable) 3,600 1,998 Cr
Cheque no. 284 88 1,910 Cr
Deposit 550 2,460 Cr
30 Cheque no. 285 620 1,840 Cr
Interest 9 1,849 Cr

Total 5,377 7,207

Pampered Pets - General Ledger

Cash at Bank Account
Date Particulars Debit Credit Balance
1 June Balance
30 June CRJ 4,848 4,723 Dr
30 June CPJ 2,277 2,446 CR

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 Pampered Pets

Bank Reconciliation Statement

as at 30 June

Bank balance, 30 June

Plus: unrecorded deposits

Less: unpresented cheques

Balance as per cash at bank account

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