You are the person responsible for the ledger of Cameron Ltd. You are concerned that the statement of account for the month ending 30 June 2016 received from Deveson Ltd does not agree with the records shown for Deveson Ltd in the subsidiary ledger. As a valued customer of Deveson Ltd, Cameron Ltd receives a trade discount of 5% off the marked price of all goods purchased. In addition, a 2% discount is allowed for payments made within 10 days of the statement date. Ignore GST.
Deveson Ltd records all sales to Cameron Ltd net of trade discount. The statement dated 30 June shows that Cameron Ltd owes $19 680 to Deveson Ltd. An examination of the account of Deveson Ltd in the subsidiary ledger and other records reveals the following discrepancies:
1. Because of a clerical error, the credit side of the account of Deveson Ltd had been overstated by $585.
2. The cash discount of $660, which had been deducted when making the May payment, had been disallowed by Deveson Ltd because the payment was received more than 10 days after the statement date.
3. Invoice no. D443 for a gross amount (before trade discount) of $820 had been entered on the statement twice.
4. Invoice no. D452 for a gross amount (before trade discount) of $1080 had been correctly entered on the statement but no records of the invoice had been recorded in the books of Cameron Ltd even though the goods had been received.
5. Invoice no. D587 for $150 had been incorrectly debited on the statement as $510, and this invoice had not been entered in the purchases journal or the subsidiary ledger as the goods had not yet been received.
6. Adjustment (credit) note no. C321 for $125 received from Deveson Ltd had not been entered in the subsidiary ledger, and had been entered on the statement as an invoice.
Required
Prepare a reconciliation memo which reconciles the amount owing on the statement of account from Deveson Ltd to the amount which Cameron Ltd actually owes at 30 June. Assuming that payment will be made on 9 July 2016, what is the amount of interbank transfer to Deveson Ltd’s bank account to pay the amount owing?
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