Question 1:

Your business cashbook balance on 29 February 2024 reflected a balance of R52000.00. The bank statement balance on the same date was R78 422.00.

A comparison of the cashbook and the bank statement for February 2023 reveals the following:
1. A payment of R11 490.00 received from a client has been incorrectly entered into the cashbook as R11 940.00.

2. Bank charges in the amount of R580.00 has been debited to your bank account.

3. A stop order payment of R69 200.00 received earlier from a client has been reversed by the bank.

4. A trust deposit of R19 112.00 has erroneously been credited to the business account.

5. Interest of R81.00 on the favourable bank balance has not been entered in the cashbook.

6. A payment made by the firm in the amount of R1 120.00 has been incorrectly entered in the cashbook as R1 210.00.

7. A payment received from a client on 29 February 2024 in the cash amount of R19200.00 is not reflected on the bank statement.

8. A payment in the amount of R2 500.00 made by the firm from the trust account appears on the business bank statement.

9. An EFT payment in the amount of R99 069.00 received from a client in respect of your account has not been entered in the cashbook.

You are required to prepare:
The supplementary cashbook for February 2024.

The bank reconciliation statement for February 2024. (15)

Question 2:

On 2 April 2024, a correspondence firm Joubert Inc has instructed you to collect R100 000 owed to his client Turkey Investments by Mr Naidoo. The following is the statement of account:

You are required to:
Transfer whatever is entitled to the firm, to the business account and record the above transactions fully in your Books of Account.

Question 3:

You are consulted by Mr Combrink who is selling his property to Ms Mona for R4.2 million. He instructs you to prepare a Sale Agreement. The essential terms of the sale are:
a) Ms Mona will pay a deposit of R1 million on signature.
b) Ms Mona will pay the transfer costs of R340 972.50 of which R278 000 is transfer duty and R3 805 is for disbursements paid on 25 November 2023 and R59 167.50 is fees incl VAT
c) You will invest the R1 million deposit in an interest-bearing account for Mona benefit.
e) Ms Mona has arranged a bond with First Bank for R3.2 million. The agreement is signed on the 15th of November 2023.
On 16 November 2023, you receive two payments by EFT from Ms Mona: R1 million deposit and R340 972.50 for the pro forma costs of transfer. You invest R1 million with ABSA Bank. On 17 November 2023, you pay the transfer duty to SARS.
On 17 November 2023, you received the rates and taxes figures and Mr Combrink pays R28 200 into the trust account which you immediately pay to the Municipality.
On 19 November 2023, you receive a Bank Guarantee from First Bank for R3.2million. On 25 November 2023, you receive the Transfer Duty receipt from SARS.
On 26 November 2023 the documents are lodged in the Deeds Office. On 30 November 2023, the transfer and bonds are registered.
You close the investment account and Absa Bank credits the investment account with R2 365 of which immediately R118.25 is paid to the Fidelity Fund and your firm receives R1 002
246.75 from ABSA Bank.
You receive R3.2 million from First Bank
You account and pay the seller and the buyer. You also transfer the fees to the business account.

You are required:
To record all the accounting entries in your books of account

Question 4:

In preparing your Budget and Cash Flow for the year ended 30 June 2025 the following information was received from your Accountant.
Monthly Expenses:

Depreciation 2024: monthly
Computer Equipment R1 500
Salaries will increase by 5% in August 2025 including that of the Director. Rent will be increased by 7% in August 2025.
You invoiced R100 000 on a monthly basis up to June 2024. You are planning on increasing the monthly invoicing with 5% from August 2024 and then with 2.5% in October
2024. Debtors pay on average 80% of the invoices during the month of invoicing and 20% in the next month.
Your bank balance on 30 June 2024 is R35 000.
You are required to draw up an Income Statement (Profit and loss) budget and a Cash Flow forecast for the year ending June 2025 in column format. List each income and expense item separately. (15)

Answers on Above Questions on Project Management Training

Answer 1: The supplementary cashbook for February 2024 along with Bank Reconcilliation Statement is prepared as follows:

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