The following information relates to Machipisha Traders.
Items that appeared on the bank reconciliation statement at 30 November 2018 but not on the bank statement:
cheque No. 652 issued to Maria on 15 June 2018, K231
Totals of the bank column of the cash journals at 31 December 2018:
Cash receipts journal K25 718
cash payments journal K27 115
Items that appeared in the cash receipts and cash payments journals, but not on the bank statement:
-a deposit entered in the cash receipts journal on 31 December 2018 banked on 3 January 2019, K792
cheque No. 985 issued on 29 December 2018 to the Municipality to pay the water and electricity account, K2211
Items that appeared on the bank statement but not in the cash journals:
bank charges K62
interest on bank overdraft K70
a stop order for an annual donation to a primary school K220
an R/D cheque originally received from debtor, Shamabanse308
a deposit paid directly into the bank account of Machipisha Traders by a tenant Funkuta, K1100.
Balance of the bank account in the general ledger at 30 November 2018 (debit), K297
Balance as per bank statement 31 December 2018 (favourable), K990.
Required:
Complete the cash receipts and cash payment journals of Machipisha Traders for December 2018.
Show the bank account in the general ledger of Machipisha Traders properly balanced at 31 December 2018.
Prepare the bank reconciliation statement of Machipisha Traders as at 31 December 2018. Begin with the balance as per bank statement.