Briefly explain the purpose of bank reconciliation (in your own word) Give FOUR advantages of electronic statements

1.1.1 Cashbook for September 2020

Date	Details	Folio	Amount (R)	Date	Details	Folio	Amount (R)
Receipts (Debit)				Payments (Credit)
Sept 1	Capital contribution	R005	400 000	Sept 1	Lime and fertilizer	C120	3 000
Sept 2	Sale of old equipment	R006	8 000	Sept 6	Water and electricity	C121	5 000
Sept 4	Rental income	R007	10 000	Sept 10	Feed and vaccines	C122	8 000
Sept 12	Sales (direct deposit)	Rec	10 000	Sept 18	Wages	C123	15 000
Sept 15	Insurance refund	R009	4 000	Sept 22	Building material (Buidit)	C124	25 000
Sept 21	NYDA Grant	Rec	50 000	Sept 29	Wages	C125	15 000
				Sept 30	Balance c/d		411 000
Total			482 000	Total			482 000
Oct 1	Balance b/d		411 000

Calculation of Balance:
Total Receipts = $R400\,000 + R8\,000 + R10\,000 + R10\,000 + R4\,000 + R50\,000 = R482\,000$
Total Payments = $R3\,000 + R5\,000 + R8\,000 + R15\,000 + R25\,000 + R15\,000 = R71\,000$
Closing Balance = Total Receipts - Total Payments
Closing Balance = $R482\,000 - R71\,000 = \boxed{R411\,000}$

1.2
The purpose of bank reconciliation is to compare the cash balance in a business's cashbook with the balance shown on the bank statement. This process helps identify and explain any differences between the two records, ensuring that both the business's books and the bank's records are accurate and up-to-date. It helps to detect errors, unrecorded transactions, and outstanding items like unpresented cheques or deposits in transit.

1.3
Four advantages of electronic statements are:

• Convenience: They can be accessed anytime, anywhere, through online banking platforms.
• Environmental friendly: They reduce paper consumption, contributing to a greener environment.
• Security: They are often password-protected and less susceptible to physical theft or loss compared to paper statements.
• Easy storage and retrieval: Electronic statements can be easily saved, organized, and searched on a computer or cloud storage, reducing clutter.