BANK RECON QUESTION 2 Cannot Struggle presented the following information to you: 1 Bank reconciliation statement on 31 December 20.1 Outstanding cheques: No. 101 R 400,00 106 550,00 107 160,30 108 240,00 110 10,50 Outstanding deposit 840,00 2 The balance of the bank account in the ledger on 31 December 20.1 was overdrawn by 640,00 3 Totals for January 20.2 Cash payments journal 600,00 Cash receipts journal 8 120,00 4 According to the bank statement the following were not recorded in the cash journals: 4.1 Bank charges 4.2 Interest on overdraft 62,50 33,20 4.3 Bill received from P Botha and discounted at the bank during November 20.1, dishonoured (the entry regarding the discounting of the bill was entered in the ledger) 318,00 4.4 Cheque no. 0042 drawn by P Botes for (debit in the bank statement) 118,00 4.5 Stop order in favour of Safe Insurers for 140,00 (This amount represents the annual insurance premium and includes VAT.) 4.6 Cheque received from P Steyn, dishonoured. 4.7 Cheque no. 125 for 90,00 400,00 5 The following items do not appear on the bank statement: R Cheque no.101 400,00 106 550,00 125 40,00 126 127 141,50 254,00 Deposit made on 30 January 20.2 for R284,00. Cheque no. 101 was drawn on 15 July 20.1 to pay a bill in favour of R Lourens. According to the cheque stub, cheque no. 125 was drawn for R400 in respect of cash purchases inclusive of VAT. Required (a) Prepare the bank account in the ledger. (b) Prepare the bank reconciliation statement to determine the balance according to the bank statement on 31 January 20.2