BAFS – Bank Reconciliation Answers

BAFS – Bank Reconciliation Answers

1. 1991.Q5

2. 1996.Q3

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BAFS – Bank Reconciliation Answers

3. 1999.Q2

4. 2001.Q2

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BAFS – Bank Reconciliation Answers

5. 2002.Q2

(c) $110 953 (1)

6. 2003.Q3

(A) A bank overdraft is the amount owing to the bank (the amount withdrawn in excess of the amount deposited). It 2
should be classified as a liability, usually current, on the balance sheet / statement of financial position.

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BAFS – Bank Reconciliation Answers

7. 1994.Q4

8. 2007.Q4

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BAFS – Bank Reconciliation Answers

9. 1993.Q10
(a)

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BAFS – Bank Reconciliation Answers

10. 2009.Q6(a)

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BAFS – Bank Reconciliation Answers

11. 2010.Q3(b)

12. 2006.Q5(a)(b)

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BAFS – Bank Reconciliation Answers

Answers to DSE past papers:

1. PP.P2A.Q1

(c) Uses:
- Locating accounting errors either by the bank or by the firm 2
- Explaining differences at a given date between the balance of the bank account as
shown in the firm’s cash book and the balance of bank statement as prepared by the
bank
- Preventing fraud by employees
(1 mark for each relevant use, max. 2 marks)

2. 2012.P2A.Q5

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BAFS – Bank Reconciliation Answers

(c) Reasons:
- Insufficient cash in drawer’s account (max) 2
- Post-dated cheque
- Wrong drawee’s name/drawers signature
(1 mark for each relevant reason)

3. 2013.P2A.Q1(b)

4. 2014.P2A.Q9(a)(b)

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BAFS – Bank Reconciliation Answers

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BAFS – Bank Reconciliation Answers

5. 2015.P2A.Q1
(a)

(b)

6. 2017.P2A.Q4

Cash at bank
$ $
0.5 Balance b/d 105 468 Electricity (ii) 900 0.5
1 K & K Limited (i) 15 236 Bank charges (iv) 794 0.5
0.5 Dividend income (v) 3 160 Trade receivables (vi) 11 630 1
1 Rent and rates (vii) 180 Term deposit (ix) 60 000 0.5
Interest income (ix) 1 200 0.5
Balance c/d 49 520
124 044 124 044

Bank reconciliation statement as at 31 December 2016

$ $
Adjusted balance as per cash at bank account 49 520 0.5
Add: Unpresented cheques (i)
-450998 35 060 0.5
-482118 7 850 42910 0.5
92 430
Less: Incorrect debit made by bank (iii) 8 755 1
Uncredited deposits (viii) 81 425 90 810 1
Balance as per bank statement 2 250 0.5
(4)
10 marks

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BAFS – Bank Reconciliation Answers

7. 2018.P2A.Q2

(a)(i)
Cash at bank
2017 $ 2017 $
0.5 Balance b/d 50 000 Trade receivables (i) 30 000 0.5
0.5 Trade payables (ii) 6 300 Trade receivables (iv) 4 430 1
1 Trade payables (v) 9 310 Balance c/d 31 180 0.5

65 610 65 610
(4)
(ii)

Bank reconciliation statement as at 31 December 2017

$
Adjusted balance as per cash book 31 180 0.5
Add: Unpresented cheque – 723881 (iii) 10 390 0.5
41 570
Less: Uncredited cheque (vi) 4 100 0.5
Balance as per bank statement 37 470 0.5
(2)

(b) - a cheque dated with a future date 1

- cheque #723958 1
(2)

8 marks

Marking notes – Q2:

 Other acceptable answers for part (b)
 The cheque with a date which is after the issue date  指票面日期是在簽發日期之後的支票
 The date written on the cheque is not yet due  指尚未到兌現日期的支票

8. 2019.P2A.Q2

(a)(i)
Cash at bank
2018 $ 2018 $
0.5 Balance b/d (Balancing 360 000 Trade receivables (ii) 3 900 0.5
figure)
0.5 Interest income (i) 2 400 Trade receivables (iii) 6 300 0.5
Trade payables (v) 96 000 0.5
Balance c/d 256 200 0.5
362 400 362 400
(3)

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BAFS – Bank Reconciliation Answers

(ii)

Bank reconciliation statement as at 31 December 2018

$ $
Balance as per bank statement 300 000 0.5
Add: Uncredited deposits (vi) 23 100 0.5
323 100
Less: Incorrect credit transfer 5 200 1
Less: Unpresented cheques (vi) 61 700 66 900 0.5
Adjusted balance as per cash at bank account 256 200 0.5
(3)

(b) Reasons:
- Insufficient balance in drawer’s account 1
- Wrong drawee’s name/drawer’s signature 1
(1 mark for each relevant reason, maximum 2 marks) (2)

8 marks
Marking notes – Q2(a)(i):
 X: Same items on both sides
 X: Same items on both cash at bank and bank reconciliation statement

 Wordings in T-account for part 2(a)(i)

Acceptable Not acceptable
 Interest revenue × Interest received
 Bank interest revenue × Interest
 Trade payables × Payables
 Accounts payable × Other payables
 Trade creditors × Other creditors
 Creditors
 Trade receivables × Receivables
 Accounts receivable × Other receivables
 Trade debtors × Other debtors
 Debtors
 Balance c/d

 Wordings in bank reconciliation statement for part 2(a)(ii)

Acceptable Not acceptable
 Adjusted balance as per cash at bank account / cash × Balance before adjustments
book × Balance as per cash at bank
→ must have the meaning of ‘adjusted’ / ‘updated’
 Incorrect credit transfer (iv)
 Bank error
 Credit transfer wrongly made
 Credit transfer
 Uncredited deposits (vi)
 Uncredited items

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BAFS – Bank Reconciliation Answers

Acceptable Not acceptable

 Uncredited cheques
 Bank lodgment not yet recorded
 Deposit in transit
 Balance c/d

 Other acceptable answers for part (b)

 The cheque is a stale cheque / more than 6 months  支票上的日期過半年還未兌現
 The amount in word differs from the amount in figures
 There is no date on the cheque
 The date of the cheque is incorrect
 發出支票的人在銀行簽署與支票上的簽署不符

9. 2020.P2A.Q9(A)(a)

(A)(a) Statement to calculate the bank account balance before updating as at 31 December 2019
$ $
Bank statement balance 259 465 0.5
Add: (2) Uncredited deposits 47 900 0.5
(3) Bookkeeper’s error on recording dishonoured cheque 56 970 1
(4) Interest expense 1 795 106 665 0.5
366 130
Less: (1) Stale cheque (#418226) 23 615 1
(1) Unpresented cheque (#471218) 71 620 0.5
(1) Post-dated cheque (#473006) 9 600 104 835 1
Bank account balance 261 295 1
(6)

 X: 不 接 受 先 更 新 Bank account ， 然 後 以 updated bank account balance 準 備 bank reconciliation

statement.

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