Record any differences identified in the bank reconciliation process in a supplementary cashbook receipts and payments with columns for details and amount. Begin with the totals before any amendments.
The following information was taken from the books of Underwood Traders for December 2019
and January 2020:
Items appearing on the
31 December 2019
Bank Reconciliation Statement of Underwood Traders as at 31st December 2019
Details Amount (R)
Balance per bank statement (favourable) 405 670
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 2 500
Balance per Bank account( favourable) 367 840
Cheque counterfoils of Underwood Traders‐ January 2020
Date Cheque Counterfoil no. Amount (R)
3 CQ306 6 540
12 CQ307 2 410
16 CQ308 12 500
17 CQ309 23 560
20 CQ310 1 470
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) Balance(R)
1 Balance 405 670 Cr
1 CQ276 12 450 393 220 Cr
1 Deposit 18 700 411 920 Cr
3 CQ306 6 540 405 380 Cr
5 Deposit 8 900 414 280 Cr
7 Correction of error on deposit 2 500 411 780 Cr
7 Monthly Service fees 1 760 410 020 Cr
12 CQ307 2 410 407 610 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 1 470 416 170 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.
3) The deposit corresponding with DS208 was credited on the bank statement at the correct
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 3 420, reflected on the bank statement, was in favour of Cellfirst who
is the business’s cellphone provider.
6) The direct deposit on 20 January was a dividend received from XY Capital.
7) Cheque no CT402 was incorrectly debited to the business bank account.
8) The debit order in favour of Sky Wise is in favour of monthly fibre costs.
9) The debit order in favour of JB Properties is for the business rent expense.
10) CQ313 was incorrectly debited twice on the bank statement.
Required:
Use the information given above to complete the following for January 2020:
Record any differences identified in the bank reconciliation process in a
supplementary cashbook receipts and payments with columns for details and
amount. Begin with the totals before any amendments.
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