Below is the Cash Receipts Journal, Cash Payments Journal, Cash at Bank Ledger account and Bank Statement of Parker’s Party Supplies for the month ending May 312021.

The bank reconciliation prepared in the previous month showed an outstanding deposit of $510 and the following outstanding cheques: no. 204 for $415 and no. 221 for $90. The balance as per the cash at bank ledger account was $4767 DR.

Cash Receipts Journal
Date 2021	Particulars	Cash at Bank
May-02	Martin	215
3	Sales	430
6	Sales	320
10	Khalifa	205
13	Sales	632
17	Sales	207
22	Michael	86
30	Sales	503
		2598

Cash Payments Journal
Date 2021	Particulars	Cheque No	Cash at
			Bank
May-03	Electricity Expense	222	86
4	Printing Expense	223	134
10	Telephone Expense	224	209
14	Wages Expense	225	646
17	Advertising Expense	226	652
23	Petrol Expense	227	150
28	Insurance Expense	228	309
29	Wages Expense	229	200
30	Car Registration Expense	230	346
			2732

Cash at Bank
Date	Account	$	Date	Account	$
May-01	Balance	4767

EAST SIDE BANK
NAME OF ACCOUNT: Parker’s Party Supplies			ACCOUNT NO. 801055
DATE OF ISSUE: 31 May, 2021				PAGE 30
Date	Particulars	Debit	Credit	Balance
May-01	Balance			4762 CR
1	Direct Transfer - Hughes		510	5272 CR
2	Direct Transfer - Martin		215	5487 CR
3	Chq 222	86		5401 CR
3	Direct Debit - Car Lease	400		5001 CR
3	Deposit		430	5431 CR
6	Chq 204	415		5016 CR
6	Deposit		320	5336 CR
10	Direct Transfer - Khalifa		205	5541 CR
10	Chq 224	229		5312 CR
13	Deposit		632	5944 CR
17	Deposit		207	6151 CR
17	Chq 226	652		5499 CR
20	Chq 225	646		4843 CR
22	Direct Transfer - Michael		86	4939 CR
24	Account Fees	44		4895 CR
27	Chq 227	150		4745 CR
29	Chq 228	309		4436 CR
		Total debits	Total Credits	Balance
		2931	2606	4436 CR

Required:

a. Complete the cash journals and the cash at bank ledger account at 31 May 2021. Use the Excel templates provided.

b. Prepare a bank reconciliation statement at 31 May 2021. Use the Excel template provided.

c. Identify the three (3) main reasons the bank statement and cash at bank ledger account may disagree over the same period. Provide an example of each.

Answer rating: 100% (QA)

Date Particulars Debit Credit Balance 1 1May Balance 4762 CR 4762 CR 2 1May Direct Transfer Hughes 5... View the full answer