The information below applies to Questions 1 to 3, and relates to Sun-Eaze, a sunglass retailer.
Bank reconciliation statement of Sun-Eaze as at 31 March

Bank reconciliation statement of Sun-Eaze as at 31 March 
DetailsAmount
Balance per bank statement144 31378
Add outstanding deposits
No. 5715 52750
Less outstanding cheques
No. 390–3 15858
No. 457–6 31716
No. 458–947572
Add error – deposit no. 568 understated on the bank statement789644
Balance per bank account138 78626
For period: 1 April to 30 April
DateDetails of TransactionDebit Credit Total 
1Balance  144 313.78Cr
1Cheque no. 4576 317.16   137 996.62Cr
1Deposit  5527.50  143 524.12Cr
1Correction of error on deposit  7 896.44  151 420.56Cr
1Internet and mobile banking fees 734.36   150 686.20Cr
2Direct deposit – Shades  12 634.30  163 320.50Cr
3Cheque no. 459 20 068.70   143 251.80Cr
5Cheque no. 460 15 051.50   128 200.30Cr
6Deposit  14 046.68  142 246.98Cr
6Cheque no. 461 2 574.10   139 672.88Cr
10Direct deposit – G Grey  6 334.84  146 007.72Cr
11Cheque no. 462 23 413.46   122 594.26Cr
12Deposit  15 499.78  138 094.04Cr
13Debit card fees 301.96   137 792.08Cr
14Cheque no. 463 28 430.62   109 361.46Cr
14Cheque no. 463 28 430.62   80 930.84Cr
15Debit order – Watchdog Security 7 896.44   73 034.40Cr
18Cheque no. 464 10 034.34   63 000.06Cr
20Deposit  7 434.26  70 434.32Cr
24Cheque no. 465 18 396.28   52 038.04Cr
26Service fees 493.68   51 544.36Cr
27Cheque no. 0984 4 579.94   46 964.42Cr
27Debit order – Get Wired 14 414.48   32 549.94Cr
28Cheque no. 466 8 361.94   24 188.00Cr
29R/D – F Baggins 15 499.78   8 688.22Cr
30Interest on current account  1 441.90  10 130.12Cr

Take note of the following supplementary information:
• Cheque no. 390 was issued six months ago and needs to be cancelled, as it is stale. The amount had initially been paid to Brand Republic for online marketing.
• Shades paid for repairs done for them on the previous day via a direct deposit to the business.
• Cheque no. 461 was correctly recorded in the cash payments journal.
• G Grey settled his outstanding account through a direct deposit to the business on 10 April.
• Cheque no. 463 should only have been debited once on the bank account.
• Watchdog Security, who provides the business with security services, was paid via a monthly debit order.
• Deposit no. 574 on 20 April was incorrectly recorded in the cash receipts journal.
• Cheque no. 0984 was not written out by the business, and should have been debited to a different account.
• The monthly telephone bill was paid to Get Wired by debit order.
• A cheque received from F Baggins for payment of his outstanding account, which had originally been deposited as deposit no. 573, was returned by the bank due to insufficient funds.
Cash journals
Cash receipts journal of Sun-Eaze – April CRJ1 CRJ4

Question 1

Complete the cash receipts and cash payments journals with information noted in the bank reconciliation statement, bank statement, and supplementary information.

Note: The transactions currently recorded in the cash journals need not be included in the journals below – only record any additional transactions. However, use the transactions above to calculate the totals of the journal columns. The rand symbol (R) is not required. The “folio”, “analysis of receipt”, and “cost of sales” columns may be ignored.

Question 2

Using the cash receipts and cash payments journals, prepare the bank account in the general ledger for April. The rand symbol (R) is not required.

Bank

Question 3

Prepare the bank reconciliation statement of Sun-Eaze as at 30 April, using the information provided and prepared above. The rand symbol (R) is not required.

Bank reconciliation statement of Sun-Eaze as at 30 April

Question 4

Soled Out is a shoe store, specialising in sneakers. The store only makes credit sales to its customers. One of its debtors, The Shoebox, had an outstanding balance of R200000 on
1 December 2018and had the following transactions with Soled Out during the month.

DayTransaction
1Soled Out made sales of R80 000 (incl. VAT) to The Shoebox. It retained the duplicate copy of invoice INV439 relating to the sale.
11The Shoebox fully settled their outstanding balance with cheque no. 276 for
R259000. Soled Out gave them a 7.5% discount for early settlement of their balance. The business provided receipt no. 3639 to The Shoebox as evidence of receipt of the payment. In order to recognise the discount, Soled Out prepared journal voucher J172, and The Shoebox prepared journal voucher JV151.
18Soled Out sold inventory to The Shoebox for R100000 (incl. VAT) and provided The Shoebox with the original invoice no. 443.
31The Shoebox fully settled their outstanding balance with cheque no. 297 for
R95 000. The business provided The Shoebox with receipt no. 3667 as evidence of receipt of payment. In order to recognise the discount, Soled Out prepared journal voucher J173 and The Shoebox prepared journal voucher JV152.

Prepare the account for The Shoebox in the debtors ledger of Soled Out for the month of December. The rand symbol (R) is not required.

The Shoebox

Get completed answers on above questions on Bookkeeping and Accounting

Answer 1: 

The preparation of cash receipts and cash payments journals with information noted in the bank reconciliation statement, bank statement, and supplementary information is performed as follows:

answer

Student Life Saviour South Africa has experts to provide assistance in accounting subject with its best accounting assignment help experts at affordable prices.


Content Removal Request

If you believe that the content above belongs to you, and you don’t want it to be published anymore, then request for its removal by filling the details below. It will only be removed if you can provide sufficient evidence of its ownership.