The following information relates to the June 2020 cash transactions for Uruguay Ltd The following unpresented cheques (outstanding cheques) appeared on the 31 st May 2020 bank reconciliation Cheque no Amount ($) 6539 1,207 60 6548 3,605 00 6549 317 40 6555 575 60 6558 990 00 All cheques except for cheque no 6558 are included in the 30 th June bank statement On 31 st May, a deposit of $5,163 00 was outstanding In the company's records the cash balance at 31 st May was $39,659 56 Total cash payments were $99,565 60 for the month of June Total cash receipts for June were $104,291 40, but $3,964 90 of these were received on 30 th June are outstanding as they have not yet been credited by the bank The bank statement at 30 th June shows a closing balance of $53,852 26 The following information only appeared on the bank statement in June, service charges of $64 80 a $190 80 returned cheque due to insufficient funds in the drawer's account and the 31 st May deposit of $5,163 00 which was credited by the bank on 1 st June Cheque no 6585, written for telephone expenses on 20 th June, and recorded by the company at $1,978 00, was correctly paid by the bank as $1,996 00 The June bank statement shows a debit of $1,165 00 for a cheque which was not written by Uruguay Ltd, but which was incorrectly debited to their account by the bank The following cheques are included in the company's records but do not appear on the company's bank statement for June Cheque no Amount ($) 6598 574 80 6599 5,137 40 6614 4,181 20 6615 3,987 00 Required 1 Prepare the cash bank account in the general ledger as a result of the adjustments required to balance the account to the bank statement for the month of June 2020 (8 Marks) 2 Prepare the bank reconciliation as at 30 th June 2020 (6 Marks) 3 A manager of a small online business believes that because most of the transactions take place using electronic transfers instead of cash or cheques, the business no longer needs to do a bank reconciliation each month Discuss (4 Marks)

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The following information relates to the June 2020 cash transactions for Uruguay Ltd. The following unpresented cheques (outstanding cheques) appeared on the 31 st May

The following information relates to the June 2020 cash transactions for Uruguay Ltd.

The following unpresented cheques (outstanding cheques) appeared on the 31^st May 2020 bank reconciliation:

Cheque no.

Amount ($)

6539

1,207.60

6548

3,605.00

6549

317.40

6555

575.60

6558

990.00

All cheques except for cheque no. 6558 are included in the 30^th June bank statement. On 31^st May, a deposit of $5,163.00 was outstanding.
In the company's records the cash balance at 31^st May was $39,659.56.
Total cash payments were $99,565.60 for the month of June.
Total cash receipts for June were $104,291.40, but $3,964.90 of these were received on 30^th June are outstanding as they have not yet been credited by the bank.
The bank statement at 30^th June shows a closing balance of $53,852.26.
The following information only appeared on the bank statement in June, service charges of $64.80; a $190.80 returned cheque due to insufficient funds in the drawer's account; and the 31^st May deposit of $5,163.00 which was credited by the bank on 1^st June.
Cheque no. 6585, written for telephone expenses on 20^th June, and recorded by the company at $1,978.00, was correctly paid by the bank as $1,996.00
The June bank statement shows a debit of $1,165.00 for a cheque which was not written by Uruguay Ltd, but which was incorrectly debited to their account by the bank.
The following cheques are included in the company's records but do not appear on the company's bank statement for June:

Cheque no.

Amount ($)

6598

574.80

6599

5,137.40

6614

4,181.20

6615

3,987.00

Required:

1.Prepare the cash bank account in the general ledger as a result of the adjustments required to balance the account to the bank statement for the month of June 2020.

(8 Marks)

2.Prepare the bank reconciliation as at 30^th June 2020. (6 Marks)

3.A manager of a small online business believes that because most of the transactions take place using electronic transfers instead of cash or cheques, the business no longer needs to do a bank reconciliation each month. Discuss. (4 Marks)