QUESTION 1

a) Bank reconciliation statement

Funkytunes is a sole proprietorship that sells music instruments. Funkytunes uses a perpetual inventory sytem and is registered for VAT rate of 15%. The accountant is busy finalizing some of the accounting records for the month ended 31 January 2020.

The following are excerpts from the financial records of funky tunes for the month ended 31 January 2020;

Bank Reconciliation statement on 31 December, 2019.

bank balance as per bank statement		(491 372)
less: outstanding electronic fund transfer no; 184	5 560
less: outstanding cheque no; 191	4 068	(9 268)
		(501 000)
Add; outstanding deposit no; 11a		7 000
Add; outstanding deposit no; 81c		13 000
bank balance as per general ledger account		(481 000)

Bank statement of Funkytunes for the period of January 2020.

Date	Details	DR ($)	CR($)	Balance($)
31 Dec	Balance			(491 372)
1 Jan	Deposit no 81c		13 000	(478 372)
3 Jan	Cheque 411	1 900		(480 272)
	electronic fund transfer(EFT) 184	5 560		(485 832)
12 Jan	Cheque 414	198		(486 030)
	electronic fund transfer(EFT) 415		836	(485 194)
14 Jan	Deposit		2	(485 192)
	electronic fund transfer(EFT) 413	692		(485 884)
	Debit order	400		(486 284)
24 Jan	Deposit		1 860	(484 424)
	electronic fund transfer(EFT) 416	11 080		(495 504)
31 Jan	Cheque 419	2 550		(498 054)
	Deposit no; 11A		7 000	(491 054)

Cash Receipt and Cash Payment Journal for January 2020.

Date	Deposit ($)	Date	Cheque Number	EFT Number	$
14 Jan	3 276	3 Jan	411		1 900
31 Jan	1 170	10 Jan		415	836
				413	692
			414		198
		15 Jan	417		2 960
		20 Jan		416	11 080
			419		550

Additional information:

1. Cheque number 191 was made out on 30 june 2019 to a sole proprietorship for stationary but is now outdated.

2. The debit order on 14 january 2020 on the bank statement was for short term insurance taken out by funkytunes.

3. According to the duplicate deposit slip, $3 276 was deposited on 14 january 2020. it relates to sales made.

4. The deposit on 24 January 2020 was a direct deposit made by a debtor, C. Conrad.

5. Cheque number 419 for $550 was issued to pay wages.

6. The totals of the cash receipt and the cash payment journals have already been recorded and all the errors from above mentioned information has been corrected in the bank account in the general ledger. The balance of this account now amounts to $489 242(credit) on 31 January 2020 and can be accepted as correct.

REQUIRED;

1. Prepare the bank reconciliation statement for Funkytunes for the mnth ended 31 January 2020.