The following is the bank reconciliation statement of Newton stores at 31 August 2003: R R...

  

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The following is the bank reconciliation statement of Newton stores at 31 August 2003: R R Overdraft per bank statement 2000 Add: Cheques not yet presented No. 0004 800 0006 300 0011 1 000 0017 950 3 050 5 050 Less: Deposit not yet credited 6 200 Balance per bank account 1 150 The following is a summary of cash receipts and payments journals for September 2003, before posting to the bank account in the general ledger: Receipts Date Payments Amount Date Cheque Amount R R 9 Deposits 2900 10 Freight Stationery Purchases Freight 0021 500 13 Deposits 1 500 16 Deposits 2 500 23 Deposits 3 000 25 Deposits 5 000 30 Deposits 1950 0022 270 17 0023 3 800 21 0024 200 23 0025 Purchases 5 750 27 0026 T. Timberman 3 530 30 0027 Cash: wages 5 300 16 850 19 350 2. The bank statement for September 2003 is as follows: Date Debits Credits Balance R R R 2 000 Dr 6 200 4 200 Cr 3 900 3 180 Sept. 1 Balance Deposit 3 Cheque 006 7 Cheque R/D (D. Doubtful) 720 10 Deposit 13 Deposit 17 Deposit 19 Cheque 0023 21 Cheque 0017 22 Cheque 0024 24 Deposit 25 Deposit 26 Cheque 0025 28 Transfer Cheque 0021 30 Magtape debit M & F 300 2 900 1 500 7 580 2 500 6 080 10 080 3 800 6 280 950 5 330 5 130 3 000 8 130 200 13 130 7 380 7 630 5 000 5 750 250 500 7 130 99012 250 6 880 Cheque 0027 3 500 3 380 Service fees 100 3 280 Interest 20 3 260 Commission 3 255 Here is some additional information: 1. Cheque 0027 was incorrectly entered in the cash payments journal. 2. Cheque 0004 issued for goods brought for cash had become stale and must be written back. 3. The transfer into the bank on 28 September is for interest on a fixed deposit. 4. The Magtape debit on 30 September is for insurance. Required a. Complete the cash receipts and payments journals for September 2003. b. Prepare the bank account as it would appear in the general ledger at 30 September 2003. c. Explain what a bank reconciliation statement is, and why it is necessary to prepare such a statement periodically. d. Prepare a bank reconciliation statement at 30 September 2003 in vertical format. The following is the bank reconciliation statement of Newton stores at 31 August 2003: R R Overdraft per bank statement 2000 Add: Cheques not yet presented No. 0004 800 0006 300 0011 1 000 0017 950 3 050 5 050 Less: Deposit not yet credited 6 200 Balance per bank account 1 150 The following is a summary of cash receipts and payments journals for September 2003, before posting to the bank account in the general ledger: Receipts Date Payments Amount Date Cheque Amount R R 9 Deposits 2900 10 Freight Stationery Purchases Freight 0021 500 13 Deposits 1 500 16 Deposits 2 500 23 Deposits 3 000 25 Deposits 5 000 30 Deposits 1950 0022 270 17 0023 3 800 21 0024 200 23 0025 Purchases 5 750 27 0026 T. Timberman 3 530 30 0027 Cash: wages 5 300 16 850 19 350 2. The bank statement for September 2003 is as follows: Date Debits Credits Balance R R R 2 000 Dr 6 200 4 200 Cr 3 900 3 180 Sept. 1 Balance Deposit 3 Cheque 006 7 Cheque R/D (D. Doubtful) 720 10 Deposit 13 Deposit 17 Deposit 19 Cheque 0023 21 Cheque 0017 22 Cheque 0024 24 Deposit 25 Deposit 26 Cheque 0025 28 Transfer Cheque 0021 30 Magtape debit M & F 300 2 900 1 500 7 580 2 500 6 080 10 080 3 800 6 280 950 5 330 5 130 3 000 8 130 200 13 130 7 380 7 630 5 000 5 750 250 500 7 130 99012 250 6 880 Cheque 0027 3 500 3 380 Service fees 100 3 280 Interest 20 3 260 Commission 3 255 Here is some additional information: 1. Cheque 0027 was incorrectly entered in the cash payments journal. 2. Cheque 0004 issued for goods brought for cash had become stale and must be written back. 3. The transfer into the bank on 28 September is for interest on a fixed deposit. 4. The Magtape debit on 30 September is for insurance. Required a. Complete the cash receipts and payments journals for September 2003. b. Prepare the bank account as it would appear in the general ledger at 30 September 2003. c. Explain what a bank reconciliation statement is, and why it is necessary to prepare such a statement periodically. d. Prepare a bank reconciliation statement at 30 September 2003 in vertical format.