The following information relates to ABC Traders. The following information appeared in the Bank Reconciliation Statement of ABC Ltd on 29 February 2020.

The comparison of the Bank Statement for March 2020 from Invest Bank with the Bank Reconciliation Statement on 29 February 2020, as well as with the Cashbook Receipts and the Cashbook Payments for March 2020, revealed the following differences:

1. The bank statement reflected a favourable balance of R14 685 on 31 March 2020. 2. The following entries appeared on the bank statement only: 2.1 The outstanding deposit of R6 490 appeared on the bank statement for March 2020. 2.2 Cheque no. 991 for R1 525 appeared on the bank statement. 2.3 Bank charges for March amounted to R255. 2.4 Interest on favourable balance amounted to R215. 2.5 A stop order to Hawk Insurers for insurance premium amounted to R1 300. 2.6 A direct deposit for R3 000 received from the tenant for office rent. 3. The following information appeared in the cashbooks only: 3.1 A deposit for R4 560 on the 31st of March 2020. 3.2 The following cheques had not yet been presented for payment: 3.2.1 Cheque no. 1202 for R2 310 issued to Marks Suppliers. 3.2.2 Cheque no. 1207 being A Jones salary cheque for R5 710. 4. Cheque no. 897 is stale and must be cancelled. The cheque was issued to Hill Welfare as a donation.

5.Cheque no. 994 was lost in the post, the cheque had been issued for trading inventory purchased. A new cheque, no. 1220 was issued to Needle and Thread. No entries have yet been made.

The Task

Consider the items listed above. Indicate by means of an X in the table provided below, whether the items will be entered in the: Cashbook Receipts (CBR) Cashbook Payments (CBP) OR indicate whether no entry will be made in the cashbooks. Also provide the amounts that need to be recorded in the bank reconciliation process.

Also Prepare the bank reconciliation statement for March 2020

5 560 6 490 (875) Favourable balance as per Bank Statement Add: Outstanding deposit Less: Outstanding Cheques No. 897 (dated 28 August 2019) No. 971 (dated 8 January 2020) No. 974 (dated 15 January 2020) No. 996 (dated 26 February 2020) Unfavourable balance as per Bank Account (1525) (8 760) (3 240) (2 350) Nr CBR CBP No entry Amount Eg. 1 X R14 685 2.1 N/A 2.2 N/A 2.3 2.4 R215 2.5 2.6 3.1 R4 560 3.2.1 R2 310 3.2.2 R5 710 4. 5. R8 760 Bank Reconciliation Statement as at 31 March 2020. 5 560 6 490 (875) Favourable balance as per Bank Statement Add: Outstanding deposit Less: Outstanding Cheques No. 897 (dated 28 August 2019) No. 971 (dated 8 January 2020) No. 974 (dated 15 January 2020) No. 996 (dated 26 February 2020) Unfavourable balance as per Bank Account (1525) (8 760) (3 240) (2 350) Nr CBR CBP No entry Amount Eg. 1 X R14 685 2.1 N/A 2.2 N/A 2.3 2.4 R215 2.5 2.6 3.1 R4 560 3.2.1 R2 310 3.2.2 R5 710 4. 5. R8 760 Bank Reconciliation Statement as at 31 March 2020