Reconciliations

Bank and creditors reconciliations

The bank statement and the cash journals disagree until outstanding deposits are added and unpresented cheques are subtracted.

CAPS

Grade 11 · Accounting · Reconciliations

Accounting is a system: document, journal, ledger, then the statement.

  • The papers

    Grade 11 centres on partnerships, reconciliations, fixed assets and VAT, still from source documents through to statements.

  • The logic

    Assets equal owner’s equity plus liabilities. Every entry needs a source. VAT on sales is output VAT. VAT on qualifying purchases is input VAT. Profit is not the same as cash.

  • The relation

    Statement + outstanding deposits − unpresented cheques. That is the balance both the books and the bank should reach

  • How a marker reads it

    Do not subtract the deposit. It is money the bank has not added yet.

Each paper is 150 marks. A foreign total that does not balance is wrong even if the individual entries look neat. Show the note or the calculation the face of the statement came from.

DrCrassetequity

Worked example

A pharmacy in Durban has a bank statement balance of R8000. A deposit of R2500 is not on the statement yet. A cheque of R1200 has not been presented. Calculate the reconciled bank balance.

Before any working — hunt first

Given

Numbers and units already in the sentence: R8000 · R2500 is · R1200 has. Copy each one into a column. A name without a number is not given.

Missing

After you copy the given, the letter that still has no number is missing. The paper is pointing at: the reconciled bank balance. Circle that word — that is the missing variable.

Find

We are required to find: the reconciled bank balance. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

Write Statement + outstanding deposits − unpresented cheques with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the reconciled bank balance.

Simplified approach

The bank statement and the cash journals disagree until outstanding deposits are added and unpresented cheques are subtracted.

Culture note

A pharmacy in Durban, comparing the cash book to the bank statement.

Formulas

Statement+outstanding deposits−unpresented cheques

That is the balance both the books and the bank should reach

Step 1 / 6

Start from the statement

The statement shows R8000.

Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

4. Step-by-step working

  1. 01

    Cheque not presented

    Subtract R1200. Reconciled balance = R9300.

    Statement+deposits−cheques
  2. 02

    Step F — Box the answer with its unit

    Reconciled balance = R8000 + R2500 − R1200 = R9300.

More worked examples

Board walkthroughs on this topic. Open one, copy the working, then try the next.

Example 1 / 20

Bank statement balance R18 400 (favourable). Outstanding deposit R3 200; outstanding cheques R2 600 and R1 500. Calculate the balance per bank account.

How we got there

Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.

Explain in another language · 11

1. What is the question asking?

Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Bank statement balance R18 400 (favourable). Outstanding deposit R3 200; outstanding cheques R2 600 and R1 500. Calculate the balance per bank account.

Before any working — hunt first

Given

Numbers and units already in the sentence: R18 · 400 · R3 · 200 · R2 · 600 and · R1 · 500. Copy each one into a column. A name without a number is not given.

Missing

After you copy the given, the letter that still has no number is missing. The paper is pointing at: the balance per bank account. Circle that word — that is the missing variable.

Find

We are required to find: the balance per bank account. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

What we need to calculate: Add outstanding deposits, subtract outstanding cheques. Then substitute the given, one line at a time, to get the balance per bank account.

In other words — as if you have never seen this before

If you have never seen this before: Add outstanding deposits, subtract outstanding cheques. We will name a method in words, write the formula with no numbers, then substitute one line at a time.

2. What do we already know?

Statement R18 400 Cr.

3. Which method — and why this one?

Add outstanding deposits, subtract outstanding cheques.

4. Step-by-step working

  1. 01 / 08

    Step A — Read the question twice

    Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  2. 02 / 08

    Step A2 — Hunt: Given, Missing, Find, Calculate

    Given: Numbers and units already in the sentence: R18 · 400 · R3 · 200 · R2 · 600 and · R1 · 500. Copy each one into a column. A name without a number is not given. Missing: After you copy the given, the letter that still has no number is missing. The paper is pointing at: the balance per bank account. Circle that word — that is the missing variable. Find: We are required to find: the balance per bank account. Write that as a symbol on the left, with a question mark, before you touch a formula. Calculate: What we need to calculate: Add outstanding deposits, subtract outstanding cheques. Then substitute the given, one line at a time, to get the balance per bank account.

    Why this step: Do not name the letters yet. First hunt: what already has a number (Given), what has no number (Missing), the word the paper wants (Find), and which formula still contains the missing letter (Calculate).

  3. 03 / 08

    Step B — Write the given in a column

    Statement R18 400 Cr.

    Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.

  4. 04 / 08

    Step C — Name the method in words

    Add outstanding deposits, subtract outstanding cheques.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  5. 05 / 08

    Calculate

    18 400+3 200−2 600−1 500=R17 500.

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  6. 06 / 08

    Step G — Sense-check the size

    Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.

    Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.

  7. 07 / 08

    Step F — Box the answer with its unit

    R17 500 favourable.

    Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.

  8. 08 / 08

    Step H — What the marker is looking for

    On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.

    Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.

5. The answer

R17 500 favourable.

Copy onto your answer sheet — in this order

Answer: R17 500 favourable.

6. Check it like a marker

This should agree with the Bank account.

7. A trap first-timers fall into

First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”

Ntsako · fx-991ZA PLUS. Tap to calculate.