NSC Accounting Bank reconciliation: 4.1 Indicate whether the followi

Question

4.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK.

4.1.1 Debit card fees form part of bank charges.

4.1.2 Interest on overdraft is recorded in the Cash Receipts Journal.

4.1.3 A debit balance on the Bank Statement reflects a favourable balance.

4.2 BANK RECONCILIATION
The information provided relates to Surprise Stores. The business is owned by Themba Zwane.
- Themba receives the official Bank Statement on the 26th day of each month. He uses this to do the bank reconciliation.
- EFTs are renumbered according to date order.

REQUIRED:
4.2.1 Use the table provided in the ANSWER BOOK to calculate the final balance of the Cash Journals on 31 July 2022. (10)

4.2.2 Calculate the correct bank balance in the ledger on 31 July 2022. (4)

4.2.3 Prepare the Bank Reconciliation Statement on 31 July 2022. (8)

INFORMATION:
A. On 1 July 2022, the Bank Account in the ledger reflected a favourable balance of R53 800.
B. The Bank Reconciliation Statement prepared on 30 June 2022 showed the following outstanding deposits and EFTs:
- Deposit dated 15 June 2022 R19 600
- Deposit dated 29 June 2022 R12 800
- EFT 297 R6 000
- EFT 298 R12 300

NOTE:
(i) The deposit on 15 June 2022 appeared on the July Bank Statement as R15 500. An investigation revealed that the cashier at that time has resigned. The outstanding amounts must be written off.
(ii) EFT 297 was correctly reflected as R60 000 on the July Bank Statement.
(iii) The other outstanding amounts from the previous month appeared on the July Bank Statement.

C. Before receiving the July 2022 Bank Statement, the Cash Journals reflected the following provisional totals:
CASH RECEIPTS JOURNAL R101 200  CASH PAYMENTS JOURNAL R135 215
D. The following items on the July Bank Statement must still be recorded:
(i) A debit card payment of R1 400 for petrol for the business vehicle. Themba neglected to submit the transaction document to the bookkeeper.
(ii) The direct deposit received from debtor D Singwane, R800, in settlement of his account of R6 000.
(iii) A debit order to Palm Insurers for the business insurance, R1 800.
(iv) A direct deposit of R72 000 from Unitech College. This is an error on the statement as it does not apply to Surprise Stores. The bank was notified of this error.
(v) Total bank charges, R825.
(vi) Interest earned on savings account, R260.
E. Entries in the Cash Journals after 26 July 2022:
- Deposit on 29 July 2022 R29 500
- EFT 350 to PN Stations, dated 28 July 2022 R4 200
- EFT 405 to CT Couriers, dated 28 July 2022 R3 800
F. Bank Statement balance on 31 July 2022: R?

Description	Debit	Credit
Balance per Bank Statement	R71,020
Outstanding deposits	R29,500
Outstanding EFTs	R4,200 + R3,800
Correction for Unitech College	R72,000
Balance as per Bank Account		R41,285

4.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 4 - 2022 - Paper 2

Worked Solution & Example Answer:4.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 4 - 2022 - Paper 2

4.2.1 Use the table provided in the ANSWER BOOK to calculate the final balance of the Cash Journals on 31 July 2022.

4.2.2 Calculate the correct bank balance in the ledger on 31 July 2022.

4.2.3 Prepare the Bank Reconciliation Statement on 31 July 2022.

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