Table of Contents
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|
|Balance per bank statement||144 313||78|
|Add outstanding deposits|
|No. 571||5 527||50|
|Less outstanding cheques|
|No. 390||–3 158||58|
|No. 457||–6 317||16|
|Add error – deposit no. 568 understated on the bank statement||7896||44|
|Balance per bank account||138 786||26|
|For period: 1 April to 30 April|
|Date||Details of Transaction||Debit||Credit||Total|
|1||Cheque no. 457||6 317.16||137 996.62||Cr|
|1||Correction of error on deposit||7 896.44||151 420.56||Cr|
|1||Internet and mobile banking fees||734.36||150 686.20||Cr|
|2||Direct deposit – Shades||12 634.30||163 320.50||Cr|
|3||Cheque no. 459||20 068.70||143 251.80||Cr|
|5||Cheque no. 460||15 051.50||128 200.30||Cr|
|6||Deposit||14 046.68||142 246.98||Cr|
|6||Cheque no. 461||2 574.10||139 672.88||Cr|
|10||Direct deposit – G Grey||6 334.84||146 007.72||Cr|
|11||Cheque no. 462||23 413.46||122 594.26||Cr|
|12||Deposit||15 499.78||138 094.04||Cr|
|13||Debit card fees||301.96||137 792.08||Cr|
|14||Cheque no. 463||28 430.62||109 361.46||Cr|
|14||Cheque no. 463||28 430.62||80 930.84||Cr|
|15||Debit order – Watchdog Security||7 896.44||73 034.40||Cr|
|18||Cheque no. 464||10 034.34||63 000.06||Cr|
|20||Deposit||7 434.26||70 434.32||Cr|
|24||Cheque no. 465||18 396.28||52 038.04||Cr|
|26||Service fees||493.68||51 544.36||Cr|
|27||Cheque no. 0984||4 579.94||46 964.42||Cr|
|27||Debit order – Get Wired||14 414.48||32 549.94||Cr|
|28||Cheque no. 466||8 361.94||24 188.00||Cr|
|29||R/D – F Baggins||15 499.78||8 688.22||Cr|
|30||Interest on current account||1 441.90||10 130.12||Cr|
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 receipts journal of Sun-Eaze – April CRJ1 CRJ4
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.
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.
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
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.
|1||Soled Out made sales of R80 000 (incl. VAT) to The Shoebox. It retained the duplicate copy of invoice INV439 relating to the sale.|
|11||The 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.
|18||Soled Out sold inventory to The Shoebox for R100000 (incl. VAT) and provided The Shoebox with the original invoice no. 443.|
|31||The 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.
Get completed answers on above questions on Bookkeeping and Accounting
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:
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