COMPLETE THE FOLLOWING:
Q.1.1 The following information was taken from the books of Underwood Traders for December 2019 and January 2020: Items appearing on the bank reconciliation statement of Underwood Traders as at 31 December 2019. Bank Reconciliation Statement of Underwood Traders as at 31st December 2019 Details Amount (R) Balance per bank statement (favourable) 405 670 Outstanding cheques: No CQ221 6 780 No CQ276 12 450 No CQ298 21 560 No CQ305 13 240 Outstanding deposit: DS205 18 700 Correction of bank error on Deposit DS200- amount overstated by 2 500 Bank Balance per Bank account( favourable) 367 840 Cheque counterfoils of Underwood Traders - January 2020 Date 3 12 16 17 20 21 22 23 26 29 Cheque Counterfoil no. CQ306 CQ307 CQ308 CQ309 CQ310 CQ311 CO312 CQ313 CQ314 CO315 Amount (R) 6 540 2410 12 500 23 560 1 470 3 260 15 320 27 650 8 950 2 250 103 910 Deposit slips of Underwood Traders - January 2020 Date 5 12 18 20 21 22 Deposit Slip no. DS206 DS207 DS203 DS209 DS210 DS211 Amount (R) 8 900 32 400 17 430 9 650 27 890 36 540 132 810 Bank Statement from Capital Bank for Underwood Traders - January 2020 Debit/R) Credit R) Date 1 1 12 450 18 700 Balance(R) 405 670 Cr 393 220 Cr 411 920 Cr 405 380 Cr 414 280 Cr 411 780 CT 6 540 3 5 7 8 900 2 500 1 760 2410 32 400 7 12 12 15 15 16 Description Balance C0276 Deposit CO 306 Deposit Correction of error on deposit Monthly Service fees CO 307 Deposit Debit Order Internet bank fees CO 308 C0298 Deposit CO 310 Deposit CO311 Deposit CO313 CO 313 Transaction Fees CT402 Interest on credit balance CO315 Debit Order - Sky Wise Debit Order - JB Properties Deposit 3 420 320 12 500 21 560 15 430 1470 2 400 1 260 17 18 20 20 21 22 23 23 26 27 28 29 30 30 30 410 020 Cr 407 610 Cr 440 010 Cr 436 590 Cr 436 270 C 423 770 Cr 402 210 Cr 417 640 Cr 416 170 Cr 418 570 Cr 417 310 Cr 453 850 Cr 426 200 Cr 398 550 Cr 397 880 Cr 384 480 Cr 385 930 Cr 383 680 Cr 382 710 Cr 369 910 Cr 394 770 Cr 36 540 27 650 27 650 670 13 400 1 450 2 250 970 12 800 24 860 Additional information: 1) Cheque no.00221 is now stale and must be cancelled. 2) The bank has recorded cheque CQ311 at the incorrect amount. 3) The deposit corresponding with DS208 was credited on the bank statement at the correct amount of R 15 430. 4) The bank statement reflects a direct deposit (R 24 860) on 30 June, this was from tenant, K. Moody for his January rent. 5) The debit order of R3 420, reflected on the bank statement, was in favour of Cellfirst who is the business's cellphone provider. 6) The direct deposit on 20 January was a dividend received from XY Capital. 7) Cheque no CT402 was incorrectly debited to the business bank account. 8) The debit order in favour of Sky Wise is in favour of monthly fibre costs. 9) The debit order in favour of JB Properties is for the business rent expense. 10) C0313 was incorrectly debited twice on the bank statement. (714) Required: Use the information given above to complete the following for January 2020: Q.1.1.1 Record any differences identified in the bank reconciliation process in a supplementary cashbook receipts and payments with columns for details and amount. Begin with the totals before any amendments. Q.1.1.2 Open, post to and balance the bank account in the general ledger. Q.1.1.3 Compile the bank reconciliation statement as at 31 January 2020. Q.1.1.4 After you have completed a bank reconciliation, there can be numerous un-reconciled bank statement debits. In your own words explain the difference between a debit order and a stop order. (372) (6) (3) Q.1.1.1 Subsidiary Cashbook Receipts Details Amount(R) Subsidiary Cashbook Payments Details Amount(R) Q.1.1.2 General Ledger of Underwood Traders Bank B8 Date Details Fol. Amount Date Details Fol. Amount Q.1.1.3 Bank Reconciliation Statement of Underwood Traders - 31 January 2020 Details Amount(R) Q.1.1.4
