Q3b) The following is a summary from the cash ledger account of Gems & Gems for the month of October 2019: (5 Marks)

$ $ Balance b/d 1,407 Payments 15,520 Receipts 15,073 Balance c/d 960

Day and Date: Wednesday January 27, 2021 Time: 8:15 am - 10:45 am

3

16,480

16,480

On investigation you discover that: 1. Bank charges of $35 shown on the bank statement have not been entered in the company books. 2. A cheque drawn for $47 has been entered in error as a receipt. 3. A cheque of $18 has been returned by the bank marked not sufficient fund, but it has not been written back in the company books. 4. The balance brought forward should have been $1,470. 5. Three cheques paid to suppliers for $214, $370 and $30 have not yet been presented to the bank. 6. Takings of $1,542 were placed in a night safe deposit on October 31, 2019 but were not credited by the bank until November 3, 2019. 7. The bank charged a cheque of $72 in error to the companys account. 8. The bank statement shows an overdraft of $124. Instructions Prepare a bank reconciliation statement as at October 31, 2019.