You are provided with information relating to Umdoni Stores.

Question

The following information appeared in the Bank Reconciliation Statement of Umdoni
Stores on 30 September 20.22:
Balance per bank statement R5 000 Debit
Balance per Cash Book R6 500 credit
Outstanding deposit dated 30 September 20.22 R20 500
On comparing the September bank Reconciliation statement, the October bank
statement and the Cash Book for October, the following were noted:
1. The Cash Book showed a credit balance of R5 956 while the bank
statement reflected a favourable balance of R4 794 on 31 October 20.22.
2. The outstanding deposit of R20 500 on 30 September 20.22 appeared in
the bank statement on 1 October 20.22.
3. A deposit of R11 300 appeared in the Cash book on 31 October 20.22 but
not in the bank statement.
4. Rent income of R3 600 from T. Nene appeared on the bank statement but
not in the Cash Book. T. Nene made a direct deposit at the bank.
5. Service fees of R350 appeared on the bank statement but not in the Cash
book.
6. Interest on the bank overdraft of R100 appeared in the bank statement but
not in the Cash book
7. An EFT payment made by a receivable for R4 300 on 31 October 20.22
appeared in the bank statement but not in the October Cash Book.
8. Two EFT payments appeared in the CPJ on 31 October 20.22, but not on
the bank statement:
 R6 200
 R8 400
Required:
a) The Bank account in the ledger of Umdoni stores.
b) The Bank reconciliation statement on 31 October 20.2

Answer 1

a) Bank account in the ledger of Umdoni Stores:

| Date | Details | Debit (R) | Credit (R) | Balance (R) |
|------------|---------------------------|-----------|------------|-------------|
| 30-Sep-22 | Bank Statement Balance | | 5,000 | 5,000 |
| 30-Sep-22 | Outstanding deposit | | | 25,500 |
| 1-Oct-22 | Outstanding deposit | 20,500 | | 5,000 |
| 31-Oct-22 | Deposit | | 11,300 | 16,300 |
| 31-Oct-22 | Rent income - T. Nene | | 3,600 | 19,900 |
| 31-Oct-22 | Service fees | | 350 | 20,250 |
| 31-Oct-22 | Interest on overdraft | | 100 | 20,150 |
| 31-Oct-22 | EFT payment receivable | | 4,300 | 24,450 |
| 31-Oct-22 | EFT payments CPJ | | | |
| | - R6,200 | 6,200 | | 18,250 |
| | - R8,400 | 8,400 | | 9,850 |
| 31-Oct-22 | Bank Statement Balance | | | 4,794 |

b) Bank reconciliation statement on 31 October 20.22:
- Balance per Cash Book: R5,956
- Add: Outstanding deposit: R20,500
- Add: Deposit not in bank statement: R11,300
- Add: Rent income received directly at bank: R3,600
- Add: Service fees not in Cash Book: R350
- Add: Interest on bank overdraft not in Cash Book: R100
- Less: EFT payment made by receivable not in Cash Book: R4,300
- Less: EFT payments CPJ not on bank statement: R6,200 + R8,400

Adjusted Balance per Cash Book: R26,206

- Balance per Bank Statement: R4,794

Bank Reconciliation:

| Adjusted Cash Book Balance | 26,206 |
| Bank Statement Balance | 4,794 |
| Difference | 21,412 |