QUESTION 3 BANK RECONCILIATION The following information was obtained from the records of Senegal Traders for May 2016. REQUIRED 3.1 Complete the Cash Receipts Journal and Cash Payments Journal of Senegal Traders for May 2016 after taking the information given into account. Use only the columns illustrated below. In the details column write down the name of the contra account e.g. Rent income. Cash Receipts Journal Details Bank Cash Payments Journal Details Bank 3.2 Post to the Bank account in the General Ledger. Balance the account. 3.3 Prepare the Bank Reconciliation Statement as at 31 May 2016. Note: The balance of the bank statement should be calculated by using the Bank Reconciliation Statement. INFORMATION 1. A comparison of the May 2016 bank statement with the Bank Reconciliation Statement for April 2016 revealed the following: 1.1. Cheque no. 510 for R700 is now stale. The cheque was issued to Umlazi Chess Club as a donation. The club no longer exists. A cancellation entry is required. 1.2. Cheque no. 750 for R800 has not yet been presented to the bank for payment. 2. The bank account of Senegal Traders reflected a favourable balance of R1 000 on 01 May 2016. The bank columns of the cash journals reflected the following totals on 31 May 2016, before the May 2016 bank statement was received: Cash Receipts Journal R40 000 Cash Payments Journal R36 000 3. A comparison of the cash journals with the bank statement from RSA Bank for May 2016 revealed the following: 3.1. An electronic funds transfer of R3 000 was made into the bank account of Senegal Traders by P. Pan, whose account was previously written off as irrecoverable. 3.2. A debit order for R1 000 in favour of KLM Insurers for the firm's motor vehicles insurance appeared on the bank statement. 3.3.A cheque for R1 500, received from debtor K. Maple in settlement of a debt of R1 600, was dishonoured by the bank due to insufficient funds. 3.4. Cheque no. 777 for R4 000 appeared in the Cash Payments Journal only. 3.5.A deposit for R8 000 made on 31 May 2016 did not appear on the bank statement. 3.6. Cheque 783 for R1 500 issued to HR Printers for stationery was incorrectly recorded in the Cash Payments Journal as R5 100. 3.7. The bank statement erroneously reflected a deposit of R7 000 that was intended for the account of another client of the bank. 3.8. The bank statement reflected the following debits: Service fees, R400 Cash deposit fees, R150 Monthly internet banking fee, R30