WEEKS TOPIC Bank Reconciliation ACCOUNTING DATE LESSON NR. 1 Of 7 DATE .
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT THIS LESSON: ACCOUNTING WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ At the end of this lesson, learners must be able to: · Define the term ‘Reconciliation’ · Explain what is being reconciled when a Bank Reconciliation is done. LEARNER TEACHER ACTIVITIES 1 1.1 1.2 1.3 1 of 7 Pre-knowledge CRJ: Receipting and depositing of cash. CPJ: Issuing of cheques as an instruction to the bank to honour payment. Bank Account: A control account for money received and money paid ACTIVITIES TIMING Answer questions / Discussions RESOURCES NEEDED 1. Transparency of a CRJ, CPJ and a Bank Statement. LESSON PLANS GRADE 12 TERM 1 - 2012 1
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 2.2 2.3 Introduction Establish with learners that the provisional closing balance on the Bank Account in the General Ledger must be equal to the balance reflected on the Bank Statement. However, this is not the case. Therefore, there is a need for reconciliation. ACTIVITIES TIMING Answer questions / Discussions Establish the general meaning of Reconciliation to be a process of bringing into two things into agreement with each other. [Make reference to the notes provided] LESSON PLANS GRADE 12 TERM 1 - 2012 2 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION TEACHER ACTIVITIES 3 3.1 3.2 Main Body [Lesson Presentation] LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Worksheet, Discuss the relevant previous knowledge [provided in the notes] from point 1 to text book point 3.4. chalkboard / Use the question and answer approach so that learners are kept engaged at all transparency times. 3.3 Allow learners to ask questions. However, you may defer questions to a later stage if the question is not relevant at this stage of the lesson. This will assist in remaining focused and not swaying away from the lesson. 3.4 When mediating this part of the procedure, place emphasis on the following aspects: · The effect on the Bank Account when receipts are recorded in the CRJ. · The effect on the Bank Account when payments are recorded in the CPJ. · The CRJ represents the Debit side of the Bank Account. · The CPJ represents the Credit side of the Bank Account. · The double entries made in the books of the business as against the entry made on the Bank Statement. · The effect of a debit entry on the Bank Account and a credit entry on the LESSON PLANS GRADE 12 TERM 1 - 2012 3
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION Bank Statement. [Increasing or decreasing] · The effect of a credit entry on the Bank Account and a debit entry on the Bank Statement. [Increasing or decreasing] 3.5 · Favourable and unfavourable Bank balances. · Favourable and unfavourable Bank Statement balances. Establish at the end of the presentation that there is a need for reconciling the balance on the Bank Account with the balance on the Bank Statement. TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES TIMIN Conclusion The educator must summarise his lesson preferably on a transparency and spend approximately ten minutes consolidating the lesson. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 RESOURCES NEEDED G Worksheet, text book chalkboard / transparency 4
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT THIS LESSON: ACCOUNTING WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank reconciliation LESSON NR. 5 CHBFSGHVJCSHJ At the end of this lesson, learners must be able to: · Outline the procedure followed to do Bank Reconciliation. LEARNER TEACHER ACTIVITIES 1 1.1 2 of 7 Pre-knowledge Continuation from Lesson 1. LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 5 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 ACTIVITIES Introduction Spend approximately ten minutes recapping lesson 1. This must be done through the medium of questioning. TIMING Answer questions / Discussions / Selected activity completed on a transparency. RESOURCES NEEDED 1. Transparency of a CRJ, CPJ and a Bank Statement. TEACHER ACTIVITIES 3 3.1 RESOURCES NEEDED TIMING Main Body [Lesson Presentation] Activities: Worksheet, Discuss Integration of Internal Control over Cas h by explaining to learners that 1 A text book text book the business needs to ascertain whether all the entries that were made in the CRJ example chalkboard / and CPJ appear on the Bank Statement. This can only be done by means of should be transparency comparisons. used illustrate 3.2 3.2.1 LEARNER ACTIVITIES and make the Discuss 4.1 in the notes provided. discussion Focus on determining the items / amounts that are causing differences by more comparing the following: meaningful. LESSON PLANS GRADE 12 TERM 1 - 2012 6
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION · Bank column of the CRJ with the Credit Side of the Bank Statement to ascertain whether all the Deposits have been captured by the business and the bank. · Bank column of the CPJ with the Debit Side of the Bank Statement to ascertain whether Cheques issued have been presented for payment and also to ascertain whether other items as listed in the notes have been captured by the business and the bank. · Explain, with the aid of a transparency of a Salaries Journal, the need to compare the Salaries Journal with the Bank Statement. 3.2.2 Explain to learners that in the following month the Bank Statement must first be compared with the Bank Reconciliation Statement of the previous month to ascertain whether the differences of the previous month appear on the bank statement of the current month. 3.2.3 Explain to learners that the items causing the difference in balances between the Bank Account and the Bank Statement must be recorded so that the balances would agree. This process is called Bank Reconciling. LESSON PLANS GRADE 12 TERM 1 - 2012 7
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Conclusion The educator must summarise his lesson preferably on a transparency and spend approximately ten minutes consolidating the lesson. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 Worksheet, text book chalkboard / transparency 8
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT THIS LESSON: ACCOUNTING WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES At the · · · · · WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ end of this lesson, learners must be able to: Identify specific items in the CRJ that could cause differences. Identify specific items in the CPJ that could cause differences. Identify specific items on the Credit Side of the Bank Statement that could cause differences. Identify specific items on the Debit Side of the Bank Statement that could cause differences. State specifically where the items must be recorded in each of the above cases. LEARNER TEACHER ACTIVITIES 1 1.1 3 of 7 Pre-knowledge Follow-up from lesson 2. LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 9 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 ACTIVITIES TIMING Answer questions / Discussions Introduction A brief revision of the comparisons done in lesson 2. RESOURCES NEEDED 1. Transparency of a CRJ, CPJ and a Bank Statement. TEACHER ACTIVITIES 3 Main Body [Lesson Preparation] 3.1 Question learners on the items that cause differences as listed in the notes from 4.2 to 4.7. In each case learners must be prompted to indicate where the item in question will be recorded. 3.2 Special attention must be given to the recording of the following: 3.2.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Worksheet, text book chalkboard / transparency Direct deposits / EFT’s / deposits made by the business that were not captured by the business. LESSON PLANS GRADE 12 TERM 1 - 2012 10
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION 3.2.2 Stop Payments. 3.2.3 Bank Charges and Interest on Overdraft. 3.2.3 Stop Orders and Debit Orders. 3.2.4 PDC’s issued and payable in the current financial year. 3.2.5 PDC’s issued and payable in the next financial year. 3.2.6 Errors on the Cash Journals. 3.2.7 Errors on the Bank Statement. LESSON PLANS GRADE 12 TERM 1 - 2012 11
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Conclusion Spend ten minutes consolidating the lesson. Worksheet, text book chalkboard / transparency Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 12
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT ACCOUNTING THIS LESSON: WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES At the · · · WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ end of this lesson, learners must be able to: Explain what a Bank Reconciliation Statement is. Prepare Bank Reconciliation Statements using two columns. Prepare Bank Reconciliation Statements using one column. LEARNER TEACHER ACTIVITIES 1 1.1 4 of 7 Pre-knowledge From Lesson 3 LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 13 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 ACTIVITIES TIMING RESOURCES NEEDED Answer questions / Discussions Introduction Spend ten minutes recapping Lesson 3. TEACHER ACTIVITIES 3 Main Body [Lesson Preparation] 3.1 Through questioning establish that any errors or omissions in the Cash Journals would have to be rectified or included by the business. 3.2 Through questioning establish that any errors or omissions on the Bank Statement would have to be rectified or included by the bank as the business does not have any control over the Bank Statement. 3.3 Therefore, the business is only in a position of keeping a record of the discrepancies. This information is shown in the Bank Reconciliation Statement. During the reconciliation process its anticipated that the two balances would be brought into agreement with each other, viz. Bank Account and Bank Statement balances. LESSON PLANS GRADE 12 TERM 1 - 2012 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Learners must complete the remaining activities. Worksheet, text book chalkboard / transparency 14
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION 3.4 Hence, the Bank Reconciliation Statement will commence with the balance as per closing balance of the Bank Statement. This means that the Bank Reconciliation Statement is a continuation of the Bank Statement. 3.5 It must be pointed out to learners that entries recorded in the Bank Reconciliation Statement are recorded from the Bank’s point of view. These entries must not be construed as being compl eted on the Bank Statement. Therefore, the bank statement of the following month must be compared w ith the previous month’s Bank Reconciliation Statement in order to ascertain that the discrepancies in the form of errors or om issions have been corrected or included on the Bank Statement of the current month. TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Refer to Activity Bank Reconciliation Statements Demonstrate the preparation of the Bank Reconciliation Statement using a debit and a credit column. Then redo the same activity using a single column. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 Worksheet, text book chalkboard / transparency 15
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT ACCOUNTING THIS LESSON: WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES At the · · · WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ end of this lesson, learners must be able to: Record supplementary entries from the Bank Statement into the Cash Journals. Prepare the Bank Reconciliation Statement. Prepare the Bank Account. LEARNER TEACHER ACTIVITIES 1 1.1 5 of 7 Pre-knowledge Lesson 3. LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 16 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 ACTIVITIES TIMING RESOURCES NEEDED Answer questions / Discussions Introduction Recap Lesson 3 and 4 TEACHER ACTIVITIES 3 Main Body [Lesson Presentation] 3.1 Learners must complete an activity with the guidance of the teacher. Learners must identify the discrepancies and indicate where they would record these. [Use the Question and answer approach] 3.2 Compare the Bank statement with the previous month’s Bank Reconciliat ion Statement: Guide learners to commence the reconciliation process by checking that the discrepancies noted in the previous month appear in the current month. 3.2.1 3.2.2 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Worksheet, text book chalkboard / transparency Items viz, outstanding cheques, that still do not appear in the current month’s Bank Statement must be recorded in the Bank Reconciliation Statement. Stale cheques must be cancelled by making the entry in the CRJ. The same details must be used as when the entry was made in the CPJ. LESSON PLANS GRADE 12 TERM 1 - 2012 17
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION 3.3 3.3.1 Compare the Bank statement with the Bank co lumn of the CRJ: Record deposits not credited by the bank in the Bank Reconciliation Statement. 3.3.2 Record deposits credited by the bank but not captured by the business in the CRJ [Direct deposits and EFT’s] 3.3.3 Any Stop Payment of cheques made by the business must be recorded in the CRJ. The same details must be used as when the entry was made in the CPJ. 3.4 3.4.1 Compare the Bank statement with the Bank co lumn of the CPJ: Record Bank Charges, Interest on Overdraft and Dishonoured Cheques and Stop Orders / Debit Orders that were not captured by the bank in the CPJ. 3.4.2 All cheques that were not presented to the bank for payment must be recorded in the Bank Reconciliation Statement as outstanding cheques. These would include PDC’s. 3.5 3.5.1 Compare the Bank statement with the Salaries Journal: Record the cheques that were not presented by employees for payment as part of Outstanding Cheques in the Bank Reconciliation Statement. 3.6 Total the Bank Columns of the Cash Journals and prepare the Bank Account. 3.7 Balance the Bank Reconciliation Statement [The two balances must be the same] LESSON PLANS GRADE 12 TERM 1 - 2012 18
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Conclusion Worksheet, text book chalkboard / transparency Draw to the attention of the learners that the Balance as per Bank account in the Bank Reconciliation Statement could be sourced as the opening balance of the Bank Account for the following month. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 19
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT THIS LESSON: ACCOUNTING WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ At the end of this lesson, learners must be able to: · The ways in which Bank Reconciliation assists as an Internal Control Process over cash LEARNER TEACHER ACTIVITIES 1 1.1 6 of Pre-knowledge That Internal Control is a process that assists in safeguarding the assets of the business. LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 20 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 ACTIVITIES Introduction Cash in a business is classified as an asset and must, therefore, be safeguarded. Bank Reconciliation is one form of an Internal Control Process that assists in safeguarding cash from being stolen. TIMING RESOURCES NEEDED Answer questions / Discussions TEACHER ACTIVITIES 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Main body [Presentation Clarify that Bank Reconciliat ion is an Internal Control Process o ver cash that assists in ensuring the following: LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Worksheet, text book chalkboard / transparency That all entries are properly recorded in the CRJ and CPJ. [Free of errors] That monies received are deposited promptly. [On a daily basis] The business is kept informed about outstanding cheques and outstanding deposits. It is a way of detecting fraud. It assists in controlling cash so that the business does not go into an overdraft unnecessarily or exceed its overdraft facility. Keeps a track of cheque deposits so that the necessary steps can be taken to recover monies from debtors whose cheques have been dishonoured / returned unpaid. Question learners on additional control measures needed in larger businesses. Consider the following responses: · Supervisors checking the cash received from cashiers and issuing receipts. LESSON PLANS GRADE 12 TERM 1 - 2012 21
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION · · Accountant checks the cash he receives from the cashiers. The Internal auditor checks that the cash received is: ¶ according to the Cash Register Tapes ¶ properly receipted and recorded in the CRJ ¶ deposited the following day. TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Conclusion Worksheet, text book chalkboard / transparency Spend approximately five minutes consolidating the lesson. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 22
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION GRADE 12 SUBJECT THIS LESSON: ACCOUNTING WEEK LESSON SUMMARY FOR: DATE STARTED: LESSON OBJECTIVES WEEKS TOPIC DATE 88D8EDWW DATE COMPLETED: Bank Reconciliat ion LESSON NR. 5 CHBFSGHVJCSHJ At the end of this lesson, learners must be able to: · Adjust figures for Bank and Creditors’ Control in respect of PDC’s issued in the current financial year but payable in the next financial year. LEARNER TEACHER ACTIVITIES 1 1.1 1.2 1.3 7 of Pre-knowledge CPJ Bank Account Creditors’ Control LESSON PLANS GRADE 12 TERM 1 - 2012 ACTIVITIES TIMING Answer questions / Discussions 23 RESOURCES NEEDED
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION LEARNER TEACHER ACTIVITIES 2 2.1 2.2 2.3 ACTIVITIES Introduction Reporting on financial statements must not only be accurate, but it must also not be misleading to the reader of the financial statements. PDC’s issued but payable in the next financial year are recorded in the CPJ and posted to the Bank and Creditors’ Control Account. Hence, these two accounts are reduced [or adjusted] without the money actually having been paid. Therefore, the figures would be misleading to the reader of the financial statements. Consequently, the balances on these two accounts would have to be adjusted in order to provide accurate reporting to the reader of the financial statements. TIMING RESOURCES NEEDED Answer questions / Discussions TEACHER ACTIVITIES 3 Main body [Presentation 3.1 In recording information on the financial statements in respect of PDC’s issued and payable in the next financial year, the Bank Account and the Creditors’ Control Account would have to be adjusted for purposes of accurate reporting. Note that only an adjustment is made to the figures in the financial statements. No adjustment is made to the ledger accoun t. Therefore, there is no double entry for this adjustment. 3.2 Adjustment to the Creditors’ Control Account Add the value of the PDC’s issued and payable in the next financial to the balance on the Creditors’ Control Account at the end of the year. Reflect the adjusted balance in the financial statements. [Note: Trade and other Payables] LESSON PLANS GRADE 12 TERM 1 - 2012 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Activities: Worksheet, text book chalkboard / transparency 24
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION 3.3 3.3.1 There are three different situations that can arise in respect of the Bank Account and in each case the adjustment would differ. Bank Account has a favourable at the end of the year. Add the value of the PDC’s issued and payable in the next financial to the balance on the Bank Account at the end of the year. Reflect the adjusted Creditors’ Control balance in the financial statements. [Note: Cash and Cash Equivalents] 3.3.2 Bank Account has an unfavourable balance that is greater than the value of the PDC’s issued and payable in the next financial year. Subtract the value of the PDC’s from the unfavourable Bank balance. The Bank Account will now have a lesser unfavourable [credit] balance. Reflect the adjusted Bank balance in the financial statements. [Note: Trade and other Payables] 3.3.3 Bank Account has an unfavourable balance that is lesser than the value of the PDC’s issued and payable in the next financial year. Subtract the value of the unfavourable Bank balance from the value of the PDC’s issued. The Bank Account will now have a favourable [debit] balance. Reflect the adjusted Bank balance in the financial statements. [Note: Cash and Cash Equivalents] LESSON PLANS GRADE 12 TERM 1 - 2012 25
NATIONAL CURRICULUM STATEMENT LESSON PREPARATION TEACHER ACTIVITIES 4 4.1 LEARNER ACTIVITIES RESOURCES NEEDED TIMING Conclusion Worksheet, text book chalkboard / transparency Spend approximately ten minutes consolidating the lesson through the medium of T-accounts. Name of Teacher HOD: Sign: Sign: Date: Date: LESSON PLANS GRADE 12 TERM 1 - 2012 26
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION PROCEDURE FOR BANK RECONCILIATION 1. Bring about an understanding of the term “reconciliation” from the learners own understanding Q. Why is it necessary to reconcile two people? · · Due to differences Therefore, sorting these differences and bringing each into agreement with the other means RECONCIL ING. 2. Bank Reconciliation: Q. What must be brought into agreement with what? Relevant previous knowledge 2.1 Money received Recorded in the CRJ Bank Account is Debited Therefore, the CRJ represent the Debit side of the of the Bank Account 2.2 Money Paid Recorded in the CPJ Bank Account is Credited Therefore, the CPJ represent the Credit side of the of the Bank Account 2.3 Go back to 2.1 – consolidate and continue Q. What does the Bank (financial institution) do to our account when we deposit money into our bank account? A Credit Why? A Because they now owe us (business) the money and therefore, they regard us as their liability LESSON PLANS GRADE 12 TERM 1 - 2012 27
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION \ · When depositing Money The Business Debit Bank Account Asset The Bank Credit Bank Statement Liability Increases Increases Therefore, entries are recorded in opposite 2.4 Go back to 2.2 – consolidate and continue Q. What does the bank do to our account when we issue cheques to make payments? A. Debit Why? Because they owe us money and by paying out our money they owe us less, thus their liability towards us decreases · When issuing cheques OR making any form of payment via the bank The Business Credit Bank Account Asset The Bank Debit Bank Statement Liability Decreases Decreases Therefore, entries are recorded in opposite. 2.5 Favourable and unfavourable Bank Balances purely from the business point of view. Bank Account Debit Bank Statement Credit Bank Account Credit Bank Statement Debit LESSON PLANS GRADE 12 TERM 1 - 2012 FAVOURABLE UNFAVOURABLE 28
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION 3. Deductions from the above 3.1 As we debit Bank Account The bank Credits our bank statement As we Credit Bank Account The bank Debits our bank statement 3.2 Therefore, we expert that the balance on the bank account should be the same as the balance on the bank statement. 3.3 But the balances are not the same! 3.4 Because there are differences / discrepancies. 3.5 We have to reconcile the balance of the bank account with the balance on the bank statement 4. PROCEDURE FOR BANK RECO NCILIATION: 4.1 Determine the items / amounts that are causing the difference by comparing the following: · · · · Bank column of the CRJ, with the Cr. side of the bank statement Bank column of the CPJ, with the Dr side of the bank statement Salaries journal with the bank statement Previous bank reconciliation statement with the current month bank statement. NOTE THE SEQUENCE FOR THE NEXT MONTH CHANGES. What are the items that are causing the difference? 4.2 Bank charges Interest on overdraft Stop orders / debit orders (differentiate) note 1 Unpaid cheques 4.3. Interest on current account Direct deposit 4.4 Deposits in the CRJ not credited by bank LESSON PLANS GRADE 12 TERM 1 - 2012 29
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION 4.5 Cheques issued and not recorded in the CPJ but not presented to the bank for payment – including PDC issued (NOTE 2) 4.6 Stop payments (NOTE 1) 5. Use the logical Approach 5.1 Who should make the entries firs (the business or bank) 5.2 Entries missing in the CRJ and CPJ will be recorded from the point of the business. 5.3 Entries missing on the bank statement will be shown on the bank reconciliation statement from the point of view of the bank 5.4 NOTE: The bank Reconciliation Statement is a continuation of the bank Bank Statement 5.5 Through questioning, learners must be made to understand that the CRJ and the CPJ is finally totalled after the bank statement arrives, and reconciliation is done Q. What are provisional totals? 5.6 How do PDC issued affect the bank and creditors control in the financial statements NOTES 1. STOP ORDERS AND DEBIT ORDERS Ø They are both instructions to the bank TO PAY ·STOP ORDER Ø Instruction to the bank to pay a specific amount to a person/ business on a specific date for a specific period ·DEBIT ORDERS Ø Instruction to the bank via the payee to pay a certain sum of money to the payee on a monthly basis. Note that the amount can differ from time to time 2. STOP PAYMENT. Instruction to the bank NOT TO PAY a cheque that has already been issued. LESSON PLANS GRADE 12 TERM 1 - 2012 30
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION RECORDING THE INFORMATION ON THE FINANCIAL STATEMENTS 3. Adjust Creditors’ Control and Bank Balances as a result of PDC’s issued and payable in the next financial year. · CREDIT ORS’ CONTROL Ø Add the value of PDC’s issued and payable in the next financial year to the bank account balance · BANK ACCOUNT HAS AN UNFAVOURABLE BALANCE THAT IS GREATER THAN THE VALUE OF PDC’S ISSUED AND PAYABLE IN THE NEXT FINANCIAL YEAR Ø Subtract the value of the PDC’s from the unfavourable bank balance and bank account will now have a lesser unfavourable balance [Cr] · BANK ACCOUNT HAS AN UNFAVOURABLE BALANCE THAT IS LESSER THAN THE VALUE OF PDC’S ISSUED AND PAYABLE IN THE NEXT FINANCIAL YEAR Ø Subtract the value of the PDC’s from the unfavourable bank balance and bank account will now have favourable balance [Dr] LESSON PLANS GRADE 12 TERM 1 - 2012 31
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION GRADE 12 WEEK: LESSON: DEBTORS TRANSACTIONS AND DEBTORS ACCOUNTS WORKSHEET 1 JOURNALS · Dr When customers or other enterprise buy goods on credit from our enterprise, the transaction is recorded in the Debtors Journal (DJ) · Any sales returns are recorded in the Debtors Allowance Journal (DAJ) · Payments received from debtors are recorded in the Cash Receipt Journal (CRJ) · Errors that are corrected, interest charged on overdue accounts and transfers between debtors and creditors accounts are recorded through entries in the General Journal (GJ) DEBTORS CONTROL ACCOUNT: FORMAT DEBTORS CONTROL ACCOUNT Cr Date Day Details fol Amount Date Day Details fol amount 2011 Apr 1 Balance b/d xxxx 30 Bank and discount allowed CRJ xxxx 30 Sales DJ xxxx Debtors allowances DAJ xxxx Bank (R/D) CPJ xxxx Journal credits GJ xxxx Petty cash PCJ xxxx Balance c/d xxxx Journal debits GJ xxx 2011 Apr. x xxx Balance b/d xxxx LESSON PLANS GRADE 12 TERM 1 - 2012 32
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION · · 2. The balance brought down on the debit side is the net balance which is the debit balances minus any credit balances that were obtained from the debtors ledger. Credit balances occur when debtors overpay, or when discounts are granted after an account has been settled, or when incorrect entry is made in the account. DEBTORS LEDGER · · · · Businesses that buy and sell on credit keep a debtors ledger which contains an individual account of each debtor. A record of all transactions of the debtor is shown in the Debtors Ledger. The Debtors Ledger contains the opening balance, invoices issued to him for stock sold to him on credit, returns, allowances, payments made by him (debtor) and discounts allowed to him A copy of this account is sent to the debtor at the end of the month. These accounts are presented are presented in “three column’ format instead of the conventional “T-form’ account as this is generally easy for the debtor to read and understand DEBTORS LEDGER: FORMAT Date Details 2011 April fol Debit ( ) Credit (-) Balance 01 Account rendered b/d 05 Invoice DJ xxx xxx O7 Dishonoured cheque CPJ xxx xxx 09 Petty cash voucher PCJ xxx xxx 12 Journal voucher (interest received, discount cancelled, asset disposal, transfer of correction) GJ xxx xxx Receipt CRJ xxx xxx Receipt (discount allowed) CRJ xxx xxx 21 Credit note DAJ xxx xxx 25 Journal voucher GJ xxx xxx 17 xxx The following transactions resulted in the entry being made on the debit side of debtor’s accounts: LESSON PLANS GRADE 12 TERM 1 - 2012 33
NATIONAL CURRICUL UM STATEMENT LESSON PREPARATION
Hence, the Bank Reconciliation Statement will commence with the balance as per closing balance of the Bank Statement. This means that the Bank Reconciliation Statement is a continuation of the Bank Statement. It must be pointed out to learners that entries recorded in the Bank Reconciliation Statement are recorded from the Bank ˇs point of view.
Timeframe Unit Instructional Topics 4 Weeks Les vacances Topic 1: Transportation . 3 Weeks Les contes Topic 1: Grammar Topic 2: Fairy Tales Topic 3: Fables Topic 4: Legends 3 Weeks La nature Topic 1: Animals Topic 2: Climate and Geography Topic 3: Environment 4.5 Weeks L’histoire Topic 1: Pre-History - 1453 . Plan real or imaginary travel .
Gestation, Length, and Size of Casket Age of baby at death 6 weeks 7 weeks 8 weeks 9 weeks 10 weeks 11 weeks 12 weeks 13 weeks 14 weeks 16 weeks 18 weeks 20 weeks
User Guide - Bank Reconciliation Manager Page 12 of 21 5. Bank Reconciliation This chapter describes how to use Bank Reconciliation Manager to reconcile the bank statement csv files with the transactions in Sage Accpac ERP. Automating the reconciliation process can save you a lot of time, especially, if you have a lot of transactions. (Please .
Northern Bank & Trust Co. Patriot Community Bank People's United Bank Pilgrim Bank Radius Bank RTN Federal Credit Union Santander StonehamBank TD Bank The Cooperative Bank The Savings Bank The Village Bank Walpole Cooperative Bank Wellesley Bank Winchester Co-operative Bank Abington Bank Bank of Canton Blue Hills Bank Boston Private Bank & Trust
files directly into the system to expedite the reconciliation process. Bank Reconciliation Interaction The following diagram illustrates the interaction between Bank Reconciliation and various modules. More information on module interaction can be found in "Concepts: How This Module Works" on page 3. Figure 1: Bank Reconciliation interaction
The Bank Reconciliation window will close, and a new entry will appear in the . Bank Reconciliations grid. If you would like to view the Bank Reconciliation report (the list of items cleared on this reconciliation), click Yes. Note You can Undothe reconciliation if a mistake has been made.
Bank Reconciliation Statement is a statement prepared, periodically with a view to enlist the reasons for difference between the balances as per the bank column of the cashbook and pass book/bank statement on any given date. Need of preparing Bank Reconciliation Statement A Bank Reconciliation
Electromagnetics and Applications - MIT OpenCourseWare . Preface - ix -
