Grade 12 · CAPS

Grade 12 Reconciliations

Accounting practice questions and a worked example

Grade 12 reconciliations cover the bank, debtors and creditors. The questions here ask you to correct the Cash Journal totals and the bank balance from a bank statement, correct the Debtors' or Creditors' Control Account and the list of balances for errors and omissions, read a debtors' age analysis, and explain internal control over cash and purchases. They come from the NSC Paper 2 for November 2023, 2024 and 2025, each with the answer from the marking guideline.

Worked example

1.1 BANK RECONCILIATION The information relates to Mango Traders for June 2023. The business uses the official bank statement which is received on the 26th of each month. 1.1.3 Explain TWO strategies that the business can use to address the problem of missing cash.

Answer & explanation

• Receiving and banking of cash should be done by different people / divide or delegate or rotate duties to prevent mismanagement of cash that can lead to missing money or theft. • Request SMS notifications from the bank / check bank statements (mini statements on App) regularly – ensure correct amounts deposited. • Outsource the transportation of cash to security companies (large amounts). • Accompany the person in charge of depositing cash / escorted by security guard. • Encourage customers to pay online (EFTs) / strive towards cashless or minimal cash handling. • Do deposits regularly, at different times, using different routes for security purposes / train employees on security or emergency responses. • Alarm systems or GPS tracking on vehicles used to transport cash. • Background checks on staff involved with cash – reliable, trustworthy.
To address the problem of missing cash, Mango Traders can implement several strategies. First, they should ensure that the receiving and banking of cash are handled by different individuals. This division of duties helps prevent mismanagement and reduces the risk of theft. Second, the business can request SMS notifications from the bank or check bank statements regularly. This allows them to verify that the correct amounts are being deposited and to quickly identify any discrepancies. These strategies help maintain better control over cash flow and reduce the likelihood of cash going missing.

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Reconciliations

Question 1 of 3

1.1 BANK RECONCILIATION The information relates to Mango Traders for June 2023. The business uses the official bank statement which is received on the 26th of each month. 1.1.1 Calculate the following on 30 June 2023: (a) Correct totals for the Cash Journals. Use the table provided in the ANSWER BOOK. [The ANSWER BOOK shows the provisional totals: receipts 81 300; payments 80 620.]

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More practice questions

Explore additional Grade 12 Reconciliations questions.

  • 2
    1.2 CREDITORS' RECONCILIATION The information relates to SEB Traders for August 2023. 1.2.2 SEB Traders intend settling the account of Phuto Wholesalers on 31 August 2023. Calculate the amount due to them.
  • 3
    1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. 1.1.1 EFT payments by debtors should be recorded in the CRJ, only after receiving proof of payment or an entry on the business' bank statement.
  • 4
    1.2 MATSAMO TRADERS The information relates to Matsamo Traders for August 2024. The business sells goods for cash and on credit. 1.2.1 Calculate the correct balance of the Debtors' Control account on 31 August 2024. Provide figures and a plus (+) or minus (–) sign for each correction. If there is no change to the balance, indicate with (0).
  • 5
    1.2 MATSAMO TRADERS The information relates to Matsamo Traders for August 2024. The business sells goods for cash and on credit. 1.2.2 Complete the correct Debtors' List on 31 August 2024. The pre-adjustment figures have been entered.

Common mistakes

  • Correcting the control account for a posting error. An error made only in a debtor's or creditor's own account changes the list, not the control account.
  • Adjusting once for an amount posted to the wrong side. An entry on the wrong side must be corrected by twice the amount.
  • Entering outstanding deposits and EFTs in the journals. Items already in the journals but not yet on the bank statement go in the Bank Reconciliation Statement.

More Grade 12 Accounting topics

Reconciliations in other grades

Aligned to CAPS Grade 12 Accounting — Reconciliations. Curriculum source: CAPS for the FET Phase, Department of Basic Education.

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