On 31 July 2020 McBay Stores extracted a trial balance from the general ledger and found that the credit QUESTION 2 side did not equal the debit side. They were unable to locate the difference and opened a general ledger bookkeeper also attempted to reconcile the cash book for July 2020 with the bank statement for that month, Below is a list of reconciling items for the bank statement on 30 June 2020 prepared by the bookkeeper of McBay Stores: R Outstanding deposits on the bank statement 29 June 2020 1 200 30 June 2020 1 150 Unpresented cheques on the bank statement No. C112 No. C613 800 No. C615 Error in bank statement - deposit understated The following information relates to July 2020 410 1 615 100 CASH BOOK - JULY 2020 CHEQUE NO/ EFT 20 R DETAILS DETAILS DATE DATE 2020 July 1 Balance bid 5 Sales 9 Sales D. Congo 15 Sales 18 Sales 20 Insurance (E525) 24 S. Sudan 26 Sales 30 Sales 2020 1 266 July 1 032 970 710 755 980 90 225 1 310 1 250 2 Egypt Suppliers C618 3 Stationery E522 Telephone C619 5 Purchases E523 15 Drawings C620 Wages C621 28 Purchases E524 1 642 120 300 869 1 500 1 325 2 715 R8 471 R8 797 1. 2 Additional information Cheque no. C112 was issued on 5 January 2020 in favour of the owner as drawings. The cheque has been lost and it will not be replaced. Cheque no. C80s, which did not appear on the July 2020 bank statement, had been erroneously omitted from the above list on 30 June 2020 The error of R100 on the bank reconciliation statement on 30 June 2020 is still being investigated by the bank and has not yet been rectified Cheque no. 52 for R$ 000 shown on the bank statement for July, was drawn by McBean Traders in favour of the supplier. As a result of this cheque McBay Stores used its overdraft facility and interest of R5.50 was charged. The bank agreed to reverse the interest charge. E$25 for R900, a payment for insurance, had erroneously been debited in the cash book as 90 The insurance expense entry in the general ledger account had been correctly recorded 3 5 6. A deposit on 7 July 2020 was made by S. Pather, a regular customer, who settled her account via 7 The debit side of the July 2020 cash book had been overcast by R200. METRO BANK STATEMENT: MCBAY STORES - JULY 2020 Debit Credit 1 200.00 1 150.00 C613 800.00 1.10 120.00 E522 1 032.00 C619 300.00 800.00 E523 July T Balance 2 Deposit Deposit 3 Cheque 4 Bank charges EFT 6 Deposit 7 Cheque Deposit (EFT) 8 EFT 9 Bank charges Cheque Deposit 15 Deposit 16 Cheque 17 Cheque Cheque 19 Bank charges Deposit Error corrected 24 Deposit 26 Deposit Interest on overdraft 869.00 3.25 1 615.00 Balance 2 621.00 3 821.00 4 971,00 4 171.00 4 169.90 4 049.90 5 081.90 4 781.90 5 581.90 4 712.90 4 709.65 3 094.65 4 774.65 5529.65 4 204.65 795.35 2 295.35 2 301.15 1 303.15 1 312.15 1 087.15 222.85 217.35 C615 1 680.00 755.00 C621 52 C620 1 325.00 5 000.00 1 500.00 5.80 O/D O/D O/D O/D O/D O/D 998.00 9.00 225.00 1 310.00 5.50 (87) REQUIRED: (a) Complete and balance the Cash Book of McBay Stores for July 2020. (b) Prepare the Bank Reconciliation Statement for McBay Stores at 31 July 2020. (8%)