DROP OUT STORES BANK RECONCILIATION STATEMENT AT 30 APRIL 2007

Cr. Balance per bank statement R1324 Add: outstanding deposit R180 = R1 504

Less: outstanding Cheques: No. 361- R 84/ Chq366-R265/ Chq367-R80/ Chq368 - R50/ Chq370- R35

Dr. balance per cash book Balances at 31 May 2007: bank statement (favourable) R324. Cash book (dr. )R384

Items on May bank statement, but not in May cash book:

1. Deposit: R180

2. Telegraphic transfer on 20 May by debtor, W. Pay, to settle rent for building, R205. 3. Cheques no: 361 - R48 / Chq no : 367-R80 Chq 724: R16.

4. Bank charges, R14

. Interest on overdraft, R10.

5. Cheque from D. Hans (a debtor) dishonoured, R125.

Items in May cash book, but not on May bank statement:

1. Deposit R560

2. Cheque no. 401-R30. Chq 403-R45

The following became apparent from answers to queries:

1. Cheque no. 361 was issued for wages and the correct amount is R48.

2. Cheque no. 368 was issued to a debtor who had duplicated his payment. The debtor returned the Cheque and requested that the overpayment be held against his June account. 3. Cheque no. 366 was issued to pay a creditor, Fox Ltd. It was lost in the post and a new Cheque, no. 372, was issued and again debited to Fox Ltd.

4. Cheque no. 724 was drawn by Drop Inn Store.

REQUIRED:

The bank will make a correction in June. Required (a) Draw up the bank reconciliation statement at 31 May 2007, and (b) Complete the cash book.