QUESTION ONE (30 MARKS)

The following information for September 2018 relates to Naidoo Stores:

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a) Totals of the bank columns in the cash journal at 30 September 2018:

Cash receipts journal 8 658

Cash payments journal 7 932

b) Credit balance per bank account in the general ledger at 31 August 2014 800

c) Unfavourable balance per bank statement at 31 August 2014 104

d) Items appearing in the cash journal but not on the bank statement:

A deposit on 30 September 2018 808

Cheque no.2894 issued on 30 September 2018 to pay telephone account 450

e) Items appearing on the bank statement but not in the cash journals:

Bank charges 35

Interest on bank overdraft 85

A direct deposit made by Parsons, a debtor 300

A cheque issued by Donald returned by the bank marked "R/D" 90

A deposit meant for another client of the bank 175

f) Cheque no. 867 for R118 issued to Ross Ltd, a creditor, during the month was recorded as

R181 in the cash payments journal. This mistake was discovered when the CPJ was

compared with the bank statement.

REQUIRED:

1.1 Complete the cash receipts journal and the cash payments journal of Naidoo Stores for

September 2018. (10)

1.2 Show the bank account in the general ledger of Naidoo Stores, properly balanced at 30

September 2018. (10)

1.3 Prepare the bank reconciliation statement of Naidoo Stores as at 30 September 2018. (10)