Required:

Use the information given above to complete the table following for January 2020:

Q.1.3 Compile the bank reconciliation statement as at 31 January 2020.

20 2020 Question 1 (Marks: 20) The following information was taken from the books of Underwood Traders for December 2019 and January 2020: Items appearing on the bank reconciliation statement of Underwood Traders as at 31 December 2019 Bank Reconciliation Statement of Underwood Traders as at 31 December 2019 Details Amount (R) 405 670 Balance per bank statement (favourable) Outstanding cheques: No CQ221 6 780 No CQ276 12 450 No CQ298 21 560 No CQ305 13 240 Outstanding deposit: DS205 18 700 Correction of bank error on Deposit DS200- amount overstated by Bank Balance per Bank account( favourable) 2 500 367 840 Cheque counterfoils of Underwood Traders- January 2020 Date Cheque Counterfoil no. Amount (R) 3 CQ306 6540 12 CQ307 2 410 16 CQ308 12 500 17 CQ309 23 560 20 CQ310 1470 21 CQ311 3 260 22 CQ312 15 320 23 CQ313 27 650 26 CQ314 8 950 29 CQ315 2 250 103 910 20 2020 Deposit slips of Underwood Traders- January 2020 Date Deposit Slip no. Amount (R) 5 DS206 8 900 12 DS207 32 400 18 DS208 17 430 20 DS209 9 650 21 DS210 27 890 22 DS211 36 540 132 810 Bank Statement from Capital Bank for Underwood Traders-January 2020 Date Description Debit(R) Credit(R) 1 Balance Balance(R) 405 670 Cr 1 CQ276 12 450 393 220 Cr 1 Deposit 18 700 411 920 Cr 3 CQ306 6540 405 380 Cr 5 Deposit 8 900 414 280 Cr 7 2 500 Correction of error on deposit Monthly Service fees 411 780 Cr 7 1760 410 020 Cr 12 CQ307 2410 407 610 Cr 12 Deposit 32 400 440 010 Cr 15 Debit Order 3 420 436 590 Cr 15 Internet bank fees 320 436 270 Cr 16 CQ308 12 500 423 770 Cr 17 CQ298 21 560 402 210 Cr 18 Deposit 15 430 417 640 Cr 20 CQ310 1470 416 170 Cr 20 Deposit 2 400 418 570 Cr 21 CQ311 1 260 417 310 Cr 22 Deposit 36 540 453 850 Cr 23 CQ313 27 650 426 200 Cr 23 CQ313 27 650 398 550 Cr 26 Transaction Fees 670 397 880 Cr 20 2020 27 CT402 13 400 384 480 Cr 28 Interest on credit balance 1 450 385 930 Cr 29 CQ315 2 250 383 680 Cr 30 Debit Order- Sky Wise 970 382 710 Cr 30 Debit Order-JB Properties 12 800 369 910 Cr 30 Deposit 24 860 394 770 Cr Additional information: 1) Cheque no.CQ221 is now stale and must be cancelled. 2) The bank has recorded cheque CQ311 at the incorrect amount. The deposit corresponding with DS208 was credited on the bank statement at the correct 3) amount of R 15 430. 4) The bank statement reflects a direct deposit (R 24 860) on 30 June, this was from tenant, K. Moody for his January rent. 5) The debit order of R 3420, reflected on the bank statement, was in favour of Cellfirst who is the business's cellphone provider. 6) 7) 8) The direct deposit on 20 January was a dividend received from XY Capital. Cheque no CT402 was incorrectly debited to the business bank account. The debit order in favour of Sky Wise is in favour of monthly fibre costs. The debit order in favour of JB Properties is for the business rent expense. 9) 10) CQ313 was incorrectly debited twice on the bank statement. Bank Reconciliation Statement of Underwood Traders- 31 January 2020 Details Amount(R Q.1.3 (6) Q.1.4 (3)