QUESTION 1 You are preparing accounts for Thabo Avery for the year to 30 November 2002. At that date, the bank current account in Thabo’s general ledger had a credit balance of P15 503, while the bank statement showed cash at bank of P3 628.
You have obtained the following from an examination of Thabo’s records:
(i)A cheque paid to a supplier for P4 595 has been recorded in the general ledger as P5 495 ERROR
(ii)Cheques written by Thabo in November totaling P22 865 were presented at the bank December (BANK STATEMENT)
(iii)A lodgment for P5 634 made on 29 November was credited on the bank statement on 2 December. (BANK statement)
(iv)A customer’s cheque for P400 which had been lodged on 18 November was not honoured by the drawer’s bank. Thabo’s bank had debited the cheque on her statement on 25 November. CASHBOOK
(v)Standing orders with a total value of P3 600 had been debited on the bank statement during the year, but had not been included in Thabo’s records.
(vi)Included on the current account statement is a lodgment for P5 000. This should have been credited to Thabo’s deposit account

Required:
(a)Show the general ledger bank account including the necessary correcting entries. (8 marks)
(b)Prepare a bank reconciliation statement as at 30 November 2002. (8 marks)