Complete the Table by Choosing
Complete the Table by Choosing one of the following options toanalyse each Transaction of Ben Bicycle Traders for February2020
Yes – Debit entry
Yes- Credit Entry
No Entry
|
Transaction: |
General Journal |
Bank account (General Ledger) |
Bank Reconciliation Statement |
A comparison of the Bank Statement of Bicycle Traders forFebruary 2020 with the Bank reconciliation Statement at 31 January2020, and the Cash Reports for February 2020, revealed thefollowing:
- The Bank account at 31 January 2020 had an unfavourable balanceof R11 000
- The cash Reports of Feb 2020 reflected the following amounts:
- Total Cash Receipts of R45390
- Total Cash payments of R39650
- The Bank Reconciliation statement at 31 January 2020 reflectedthe outstanding Deposit of 2 Debtors, Z. Bently for R4300 and A.Roggers for R3500 . The bank credited the deposit From Z Bently on1 Feb 2020
- On 5 Feb 2020 , it was discovered that the A.Roggers a Debtor ,provided a Fictitious proof of payment on 31 January 2020 to theaccountant of Bicycle Traders . The amount of R3500 was notdeposited into the bank account .
- An amount paid for telephone was entered incorrectly as R2509in the cash payments report , but shown correctly as R2905 on thebank statement .
- The following amount appeared on the bank statement but wasn’trecorded by the accountant in the cash reports
- Interest on a Fixed Deposit R895
- Stop Order for insurance R1245
- On 29 Feb 2020, a tenant of Ben Bicycle, D Donald, paid R2000of his total rental of R6500 in cash and the balance via EFT. Thecash received and the EFT were correctly recorded by the entity.The accountant however only deposited the cash on 1 March 2020, theEFT immediately reflected in the Bank account
- The bank statement reflected an unfavourable balance of R11506on 29 Feb 2020
Answer:
| Bank Reconciliation statementas on Feb.28,2020 | ||
| Balance as per Cash book(-11000+45390-39560) | -5260 | |
| Less:Fictitious deposit | -3500 | |
| Less: Short-debit of telephone pmt.check | -396 | |
| Add: interest on fixeddeposits | 895 | |
| Less:Cash not yet deposited(Feb29) | -2000 | |
| Less: Stop order charges forinsurance | -1245 | -6246 |
| Balance as per Cash book | -11506 | |
| Balance as per Bank | -11506 | |
| Rectification Journal entriesin Ben’s books | Debit | Credit |
| Debtor a/c-A.Roggers | 3500 | |
| Cash | 3500 | |
| Telephone charges | 396 | |
| Cash | 396 | |
| Cash | 895 | |
| Interest revenue | 895 | |
| Bank charges | 1245 | |
| Cash | 1245 |
| Transaction: | General Journal | Bank account (General Ledger) | Bank Reconciliation Statement |
| The Bank account at 31 January 2020 had an unfavourable balanceof R11 000 | YES | ||
| The cash Reports of Feb 2020 reflected the followingamounts: | |||
| Total Cash Receipts of R45390 | YES | ||
| Total Cash payments of R39650 | YES | ||
| The Bank Reconciliation statement at 31 January 2020 reflectedthe outstanding Deposit of 2 Debtors, Z. Bently for R4300 and A.Roggers for R3500 . The bank credited the deposit From Z Bently on1 Feb 2020 | YES | ||
| On 5 Feb 2020 , it was discovered that the A.Roggers a Debtor ,provided a Fictitious proof of payment on 31 January 2020 to theaccountant of Bicycle Traders . The amount of R3500 was notdeposited into the bank account . | YES | YES | YES |
| An amount paid for telephone was entered incorrectly as R2509in the cash payments report , but shown correctly as R2905 on thebank statement . | YES | YES | |
| The following amount appeared on the bank statement but wasn’trecorded by the accountant in the cash reports | |||
| Interest on a Fixed Deposit R895 | YES | YES | |
| Stop Order for insurance R1245 | YES | YES | |
| On 29 Feb 2020, a tenant of Ben Bicycle, D Donald, paid R2000of his total rental of R6500 in cash and the balance via EFT. Thecash received and the EFT were correctly recorded by the entity.The accountant however only deposited the cash on 1 March 2020, theEFT immediately reflected in the Bank account | NO | NO | NO |
| The bank statement reflected an unfavourable balance of R11506on 29 Feb 2020 | YES |
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