GRADE 11 TERM 1 QUESTION 1 The following information has been taken from the boo
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GRADE 11 TERM 1 QUESTION 1 The following information has been taken from the books of iRead Book Shop. The business has a current account with United Bank. REQUIRED 1.1 1.2 1.3 1.4 1.5 1.6 Complete the Cash Receipts Journal for June 2007 Complete the Cash Payments Journal for June 2007 Prepare the Bank Reconciliation Statement on 30 June 2007 Post to the Bank account in the General Ledger and balance the account. Does the business have a favourable bank balance or a bank overdraft on 31 May 2007?(2) (13) (13) (14) s a credit balance according to the bank statement a favourable or an unfavourable bank balance? INFORMATION 1 Provisional totals in the Cash Journals for June 2007 CRJ 34 000 34 000 CPJ 28 000 28 000 Bank Sundry accounts 2. The Bank Reconciliation Statement on 31 May 2007 showed the following: 4 600 Credit balance as per bank statement Credit outstanding deposit Debit cheques not yet presented for payment 5 800 No. 285 No. 298 No. 384 1 400 1 000 1 900 6 100 Debit balance as per bank account 3. A c for J e Bank R 3.1 3.2 3.3 The bank credited the outstanding deposit of R5 800. The bank paid cheque no. 285 for R1 400 Cheque no. 298 for R1 000 was issued as a donation to Worcester Athletic Club. The club has since been dissolved. The cheque must be cancelled. Cheque no. 384 for R1900 is still outstanding. 3.4Explanation / Answer
Answer to Question no. 1 - 1.1
Cash receipt journal of Pixie stores - Jun 07
Answer to Question no. 1 - 1.2
Cash payment journal of Pixie stores - Jun 07
Service fees - 100
Cash handling fees - 200
30800
Answer to Question no. 1 - 1.3
Bank reconciliation as on 30th June 2007
Answer to Question no. 1 - 1.5
The business has a debit balance of R 6100 as on 31st May, 2007. This is a favourable balance.
Answer to Question no. 1 - 1.6
Credit balance as per the bank statement is a favourable balance. Credit balance as per bank statement means debit balance as per books.
Document Day Details Amount Details 30 Total 6100 Brought forward 298 30 Warcestar Athletic Club 1000 Cheque paid cancelled due to dissoluction of trust B/S 30 M. Baron 1200 Rent for the month of Jun 07 paid directly in bank B/S 30 Marathon bank 20 Interest on favourable bank balance 34000 Provisional total TOTAL 42320Related Questions
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