On 30 September 2020 the bank column of Joel Hamwele’s cash book showed an overdraft of N$5 600 (cr)….

On 30 September 2020 the bank column of Joel Hamwele’s cash book showed an overdraft of N$5 600 (cr)….

Question:

  

Transcribed Image Text:

On 30 September 2020 the bank column of Joel
Hamwele’s cash book showed an overdraft of N$5
600 (cr). On the same date his bank statement
showed a favourable balance of N$3 300.
After comparing his cash book with the bank
statement the following differences were discovered.
1. Cash sales of N$3 760, deposited in the bank, were
not recorded on the bank statement.
2. An amount of N$8 340 received from P Suzi was
directly paid into the bank, but no entry was made in
the cash book.
3. The bank statement showed the following amounts
Cash handling fees N$ 340
Service fee
N$ 130
Interest on favourable balance N$ 150
4. Standing order payment of N$250 was made in
favour of Tsumeb Insurers.
5. Direct debit of N$970 to creditor, P Luus, was made
by the bank and no entry was made in the cash book.
6. An amount paid for electricity appeared in the cash
book as N$1 870 which was recorded on the bank
statement at the correct amount of N$1 780.
7. A standing order payment of NS1 080, for the
owner’s private MNet subscription, appeared only on
the bank statement.
8. EFT payments of N$3 580 (POP no 215) and N$3
270 (POP no 222) did not appear on the bank
statement. REQUIRED
(a) Make the necessary entries to update the bank
columns of the cash book. Bring down the balance
on 1 October 2020.
(b) Prepare a bank reconciliation statement on 30
September 2020.

Expert Answer:

Answer rating: 100% (QA)

To update the bank columns of Joel Hamwele s cash book and prepare a bank reconciliation statement on September 30 2020 we will go through each of the
View the full answer