Question1                     BANK RECONCILIATION

The information given below wasextracted from the accounting records of Mika Stores.

Required

1.1 Complete the Cash Receipts Journaland Cash payments Journal of Mika Stores for March 2018 aftertaking the information provided into account. Use only the columnsillustrated below. In the details column write down the name of thecontra account e.g Rent income. (11)

Cash Receipts Journal

Details		Bank
Total	b/f

Cash Payments Journal

	Debit	Credit
Total	b/f

1.2 Post to the Bank account in theGeneral ledger of Mika stores. Balance the account. (3)

Mika Stores

1.3 Prepare the Bank ReconciliationStatement as at 31 March 2018. Use the following format:

INFORMATION

1	The bank colum of each of the cashjournals showed the following totals before the March 2018 bankstatement was received
	Cash Receipts Journal	300 000
	Cash Payments Journal	350 000
2	A comparison of the cash journals ofMika Stores for March 2018 and the Bank Reconciliation Statementfor February 2018 with the bank statement form Key Bank for March2018 revealed the following differences:
2.1	Entries that appeared on the bankstatement but not in the cash journals:	R
2.1.1	A cheque previously received from thelessee for rent was dishonoured because of insufficient funds.	6800
2.1.2	A debit order in favour of Telkom forthe personal telephone account of the proprietor.	3800
2.1.3	Charges levied by Key Bank:
	Service fees	1500
	Cash deposit fee	1000
	Interest on overdraft	100
2.1.4	A deposit by a debtor to settle hisaccount of R6200	6000
2.1.5	A deposit by Key Bank for a successfulloan application	50 000
2.2	Entries in the cash journals that didnot appear in the bank statement:	R
2.2.1	A deposit made on 31 March 2018	102 400
2.2.2	The following cheque issues duringMarch 2018:
	Cheque no. 520	8700

3	Additionalinformation	R
3.1	Cheque no. 490 (dated 23 February2018) which appeared in the Bank Reconciliation Statement forFebruary 2018 did not appear in the bank statement for March2018	16140
3.2	Cheque no.460 issues to Rix Soccer Clubduring January 2018 as a donation must be cancelled as the cliub nolonger exists.	4800
3.3	A deposit made by Rika Stores aserroneously reflected on the bank statement of Mika Stores.	4000
3.4	An entry was made in the Cash PaymentsJournal for a cheque to a creditor MS Suppliers for R10 000. Thebank statement reflected the correct amount of the cheque, R11000.
3.5	The bank account in the ledger of MikaStores reflected a debit balance on 01 March 2018.	38800
3.6	The bank statement showed anunfavorable balance on 31 March 2018.