Reference no: EM132642584
A comparison of the bank statement for January 2020, received from ABSA, with the January 2020 cash journal of Enigma Traders and the bank reconciliation statement as at 31 December 2019 revealed the following which must be taken into account:
1. On 31 December 2019 the Bank account in the general ledger reflected a debit balance of R17 200. The following items appeared on the bank reconciliation statement on 31 December 2019:
A deposit of R2 200 made on 31 December 2019.
The following cheques had not been presented for payment at the bank during December 2019:
i. Cheque number 451 for R2 700
ii. Cheque number 473 for R3 100
iii. Cheque number 482 for R1 200
2. The outstanding deposit of R2 200 made on 31 December 2019, was credited in the bank statement for January 2020.
3. Cheque number 451 did not appear in the January bank statement.
4. Cheque number 482 issued to the SPCA as a donation is now stale and must be cancelled. No new cheque is to be issued.
5. The bank columns of the cash receipts journal and cash payments journal amounted to R67 500 and R55 200 respectively on 31 Janu
ary 2020 before the bank statement was received.
6. The bank statement reflected a credit balance of R29 840 on 31 January 2020. 7. A cheque for R1 250 received from a debtor, D Fault, was returned by the bank because there was insufficient funds in his account.
8. A deposit made by Enigma Traders on 31 January 2020, R3 800, did not appear in the bank statement for January 2020.
9. The bank statement revealed the following charges:
Service Fees R180
Interest on overdraft R 75
Cash deposit fee R125 10. A debit order for insurance on the business premises and delivery vehicles, R1 200.
11. Cheque no. 495 issued to Boxer Wholesalers for purchase of inventory was incorrectly recorded in the Cash Payments Journal as R 2 070. The bank statement reflected the correct amount of R2 700. 12. The following cheques issued during January 2020 were not reflected in the January 2020 bank statement
REQUIRED
Question 1: Prepare the cash journals for January 2020. Commence with the provisional totals. Use the following formats: Cash Receipts Journal Details Bank Cash Payments Journal Details Bank
Question 2: Prepare the Bank Reconciliation Statement as at 31 January 2020