QUESTION 4 - [22 MARKS]

Raymond Company's cheque book ledger lists the following in $ for the month ending 30 June 20X0.

Date

Cheque number

Description

Cheque

Deposit

Balance

1

4,000.00

4

722

Golf club

400.00

3,600.00

9

dividend received

2,000.00

5,600.00

13

723

food supplies

700.00

4,900.00

14

724

electricity

1,500.00

3,400.00

18

725

cash

500.00

2,900.00

26

726

stationery

800.00

2,100.00

28

727

rent

1,500.00

600.00

29

Service revenue

3,000.00

3,600.00

30

3,600.00

Raymond Company's bank statement shows the following in $ for the month ending 30 June 20X0

Date

Transaction description

Cheque number

Debit (withdrawal/charge)

Credit (Deposit)

Balance

1

4,000.00

10

Dividend from XYZ

2,000.00

6,000.00

4

722

400.00

5,600.00

14

723

700.00

4,900.00

15

724

150.00

4,750.00

19

725

500.00

4,250.00

28

Printed cheques

100.00

4,150.00

29

Service charge

80.00

4,070.00

30

4,070.00

Additional information: The correct expense of cheque 724 as shown on the bank statement.

Part A: Prepare a reconciliation starting with the cash book balance and ending with the adjusted cash book balance as at 30 June 2020 - [8 marks]

Part B: Prepare the bank reconciliation starting with the bank statement balance and ending with the adjusted cash book balance as at 30 June 2020 - [8 marks]