FAM11

Question 3 10 Marks The following information relates to Edu Traders for May 2022 The accountant of Edu Traders has been newly appointed and has requested your help with the finalisation of the bank reconciliation for the business. The following information has been provided to you: 1 Before the bank statement was received, the Bank Account showed a favourable balance of R19 400 on 31 May 2022. 2 Extract from the Bank Reconciliation Statement on 30 April 2022 Outstanding deposit (dated 24 April 2022) R31 560 Outstanding payments: a. Cheque 501 (dated 23 November 2020) R2 350 b. EFTR15400 c. Cheque 555 (dated 1 July 2021) R9 450 Cheque 501 does not appear in the May Bank Statement NB: The EFT of R15 400 appears in the May Bank Statement. The outstanding deposit of R31 560 does not appear in the May Bank Statement. An investigation shows that this is cash paid by a debtor and has not been deposited. The amount must be written off. The following still needs to be taken into account: Items appearing in the May Bank Statement but not in the journals: - Bank charges of R1 060 - A deposit of R4 500 made by another business. The bank will correct this error in June 2022. - Interest on favourable balance R313 Items appearing in the journals but not in the May Bank Statement: - A deposit of R21 343 made on 31 May 2022 - Cheque 597 (dated 15 June 2022), R14 350 - An EFT payment appeared correctly in the Bank Statement as R5 678. The Cash Journal shows this EFT as R6 578 . Required: 3.1 Calculate the correct Bank Account balance on 31 May 2022. Indicate whether this is favourable or unfavourable. 3.2 Calculate the bank statement balance on 31 May 2022