Question 5 (15 marks)

Read the information below and answer the questions that follow: The following transactions appeared in the accounting records of Dawn Ltd: 1. Bank Reconciliation Statement as at 30 June 2019:

Details	R	R
Balance per bank statement		18 800
Less: outstanding cheques		(12 200)
Cheque no. 007	7 700
Cheque no. 008	4 500
Add: Outstanding deposit		12 000
Balance as per Cash Book		18 600

2. Extract from the Bank Statement for the month of July 2019:

Details	DR (R)	CR (R)	Balance (R)
Balance brought forward			18 800
Cheque no. 007	7 700		11 100
Receipt ST200		27 600	38 700
Cheque no. 011	5 680		33 020
Bank charges	1 470		31 550
Direct deposit		3 800	35 350
Receipt ST300		12 000	47 350
Cheque no. 010	7 200		40 150
Cheque no. 012	3 500		36 650

3. A direct deposit of R3 800 was made by a debtor in settlement of his account. This amount has not yet been updated in the Cash Book. 4. A deposit of R14 500 only appeared in the Cash Book, and is included in the total receipts above. 5. Bank charges as per the bank statement have not yet been recorded in the Cash Book. 6. The following cheques only appeared in the Cash Book for the month of July 2019: Cheque no. 022: R4 800 Cheque no. 024: R7 200 Cheque no. 030: R8 100. 7. The bank made an error and incorrectly recorded a deposit of R28 600 as R27 600. It has not yet been corrected.

8. The bank incorrectly recorded a deposit of R7 950 meant for Dawn Ltd into Down Ltd account. 9. The Cash Book reflected the following amounts: Total receipts: R41 100 Total payments: R26 480.

Required: 3.1 Prepare the updated Bank account for the month of July 2019. 3.2 Prepare the Bank Reconciliation Statement for the month of July 2019.