Question 1 The following is the bank reconciliation statement of Newton Stores at 31 August 2003: R R Overdraft per bank statement 2 000 Add: Cheques not yet presented No 0004 800 0006 300 0011 1 000 0017 _950 3 050 5050 Less: Deposit not yet credited 6 200 Balance per bank account 1_150 The following is a summary of the cash receipts and payments journals for September 2003, before posting to the bank account in the general ledger: Receipts Payments Cheque Date Date 9 13 16 23 25 30 Deposit Deposit Deposit Deposit Deposit Deposit Amount R 2 900 1 500 2 500 3 000 5 000 1 950 2 10 17 21 23 27 30 0021 0022 0023 0024 0025 0026 0027 Freight Stationery Purchases Freight Purchases T. Timberman Cash: wages Amount R 500 270 3 800 200 5 750 3 530 5 300 19 350 16 850 The bank statement for September 2003 is as follows: Date Debits R Credits R Sept. 1 Dr. 6 200 300 720 2 900 1 500 2 500 3 7 10 13 17 19 21 22 24 25 26 28 Balance R 2 000 4 200 Cr. 3 900 3 180 6 080 7 580 10 080 6 280 5 330 5 130 8 130 13 130 7380 7 630 7 130 Balance Deposit Cheque 0006 Cheque R/D (D. Doubtful) Deposit Deposit Deposit Cheque 0023 Cheque 0017 Cheque 0024 Deposit Deposit Cheque 0025 Transfer Cheque 0021 Magtape debit M & F 99012 Cheque 0027 Service fees Interest Commission 3 800 950 200 3 000 5 000 5 750 250 500 30 250 3 500 100 20 5 6 880 3 380 3 280 3 260 3 255 Here is some additional information: 1. Cheque 0027 was incorrectly entered in the cash payments journal. Cheque 0004 issued for goods bought for cash had become stale and must be written back. 2. 3. The transfer into the bank on 28 September is for interest on a fixed deposit. The Magtape debit on 30 September is for insurance. 4. Required (a) Complete the cash receipts and payments journals for September 2003. Prepare the bank account as it would appear in the general ledger at 30 September 2003. (b) (c) Explain what a bank reconciliation statement is, and why it is necessary to prepare such a statement periodically. ander deur (d) Prepare a bank reconciliation statement at 30 September 2003 in vertical format. [15] Question 1 The following is the bank reconciliation statement of Newton Stores at 31 August 2003: R R Overdraft per bank statement 2 000 Add: Cheques not yet presented No 0004 800 0006 300 0011 1 000 0017 _950 3 050 5050 Less: Deposit not yet credited 6 200 Balance per bank account 1_150 The following is a summary of the cash receipts and payments journals for September 2003, before posting to the bank account in the general ledger: Receipts Payments Cheque Date Date 9 13 16 23 25 30 Deposit Deposit Deposit Deposit Deposit Deposit Amount R 2 900 1 500 2 500 3 000 5 000 1 950 2 10 17 21 23 27 30 0021 0022 0023 0024 0025 0026 0027 Freight Stationery Purchases Freight Purchases T. Timberman Cash: wages Amount R 500 270 3 800 200 5 750 3 530 5 300 19 350 16 850 The bank statement for September 2003 is as follows: Date Debits R Credits R Sept. 1 Dr. 6 200 300 720 2 900 1 500 2 500 3 7 10 13 17 19 21 22 24 25 26 28 Balance R 2 000 4 200 Cr. 3 900 3 180 6 080 7 580 10 080 6 280 5 330 5 130 8 130 13 130 7380 7 630 7 130 Balance Deposit Cheque 0006 Cheque R/D (D. Doubtful) Deposit Deposit Deposit Cheque 0023 Cheque 0017 Cheque 0024 Deposit Deposit Cheque 0025 Transfer Cheque 0021 Magtape debit M & F 99012 Cheque 0027 Service fees Interest Commission 3 800 950 200 3 000 5 000 5 750 250 500 30 250 3 500 100 20 5 6 880 3 380 3 280 3 260 3 255 Here is some additional information: 1. Cheque 0027 was incorrectly entered in the cash payments journal. Cheque 0004 issued for goods bought for cash had become stale and must be written back. 2. 3. The transfer into the bank on 28 September is for interest on a fixed deposit. The Magtape debit on 30 September is for insurance. 4. Required (a) Complete the cash receipts and payments journals for September 2003. Prepare the bank account as it would appear in the general ledger at 30 September 2003. (b) (c) Explain what a bank reconciliation statement is, and why it is necessary to prepare such a statement periodically. ander deur (d) Prepare a bank reconciliation statement at 30 September 2003 in vertical format. [15]