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QUESTION Mo Rom has been running his brandy distilling company for the last 2 years, Mo s Rum. The business has a financial year end

QUESTION
Mo Rom has been running his brandy distilling company for the last 2 years, Mos Rum. The business has a financial year end of 28 February 2023.
The bookkeeper of the business partially performed the bank reconciliation for the month ending February 2023 before contracting COVID. Mo has approached you for assistance to complete the bank reconciliation and has provided you with the following information:
The bank balance as per the General Ledger reflected a favourable balance of R143098, while the bank statement reflected a debit balance of R55000.
After performing the comparison between the Financial Records and the Bank Statement the following information was noted:
1. Transactions recorded in the Financial Records but not on the Bank Statement
a. A customer issued a EFT in favour of the business for R185000. The amount was only banked on 2 March 2023.
b. An amount of R650 was paid out of Mos personal bank account for his gym membership. The amount was incorrect credited against the bank account of the business as entertainment.
c. The following EFT payment orders were issued, correctly recorded in the financial records but have not been cleared by the bank:
i. EFT 813 issued to Waltons for the purchase of stationery for R845, and
ii. EFT 835 issued to Telkom for telephone expenses incurred during February 2023 for R1340.
2. Transactions recorded in the Bank Statement but not in the Financial Records
a. The following debit orders were noted:
i. R650 Santam for insurance premium
ii. R3500 Growth Point Properties in respect of Rental Space for the Distillery
iii. R148 Bank Charges
b. The following EFT Payment orders which were issued during January 2023 and properly recorded in the financial records for January 2023 have been presented for payment with the bank:
i. EFT 800 R450 issued to Telkom for January 2023 telephone expenses.
ii. EFT 805 R1670 was issued to Yeast and All for the purchase of yeast during January 2023.
c. Payment of R 11500 was incorrectly debited to the bank account of Mos Rum. After calling the bank it was discovered that the payment was related to another customer, Mo Ron. The bank acknowledged the error and will credit R11500 to the business bank account during March 2023.
d. A cheque from a customer for R1235 was deposited into the bank account and recorded in the financial records. The bank statement noted that the cheque was referred to drawer due to insufficient funds in the customers bank account.
e. Det Beet, a customer previously written off as bad, made a direct deposit into the bank account of the business as part payment for the debt previously owed. Det Beet paid R1100.
You are required to:
1. Prepare the bank account that will be reflected in the General Ledger after making the necessary adjustments mentioned above. (7 Marks)
2. Draft the bank reconciliation statement for the month ending 28 February 2023.
(5 Marks)

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