Good day please help with this accounting question that i got for homework:It is evident that cash is not being controlled well in the business. Identify two problems and provide advice to the owner as to how these problems can be avoided in future? The information as well as format is attached You have been provided with the following information from the books of Zebra Traders:Information from the Bank Reconciliation Statements on the 30 April 2021Balance as per bank statement (Favourable)Add: Outstanding deposits:17 20010 April 20218 50030 April 202128 500Less: Outstanding cheques2001: Dated 10 October 2020(2 220)2651: Dated 27 April 2021(4 150)2691: Dated 10 May 2021Balance as per bank account (Favourable)(11 330)36 500Cheque 2651 appeared on the bank statement for May 2021.Deposit on the 30h April appeared on the May 2021 bank statement.Cheque 2001 has to be cancelled as the charity organisation that it was given to no longerexists.The outstanding deposit of R8 500 was in respect of cash received from an outstandingdebtor. This deposit has not appeared on the May 2021 bank statement and it has beendiscovered that this amount was recorded but it was never deposited. The owner hasauthorised that this amount be written off as a loss to the business. The owner has alsoundertaken to investigate who is responsible for this theft.A comparison of the May 2021 bank statement and the May 2021 cashbooks revealed thefollowing:Bank charges of RS530 were not recorded in the cashbooks.Cheque number 2712 issued to creditor Mr. L lon, appeared correctly in the bankstatement as RS 630 but was incorrectly recorded in the Cashbook Payments asR6 530.A monthly stop order of R1 800 for insurance needs to be recorded in thecashbook.A dishonoured cheque for R2 355 appeared on the bank statement. This chequewas received from Miss H Yena, a debtor in settlement of her account of R2 400.Interest of R480 received from the bank was not recorded in the cashbook.The following entries appeared in the cashbooks of Zebra Traders and not in the May BankStatement:Outstanding deposits:R17 300 on the 17th MayR18 400 on the 31" MayCheques not yet presented for payment:2785 for R6 500 dated 12th May 20212805 for R7 770 dated 25h June 2021The bank statement balance as at 31st May 2021 is R20 815 favourable.The totals of the cashbooks before any adjustments:Cashbook receipts R8 500Cashbook payments R4 500 PROBLEMADVICE

A bank reconciliation statement is the statement which reconciles or matches the balance as per cash…

It is evident that cash is not being controlled well in the business. Identify two problems and provide advice to the owner as to how these problems can be avoided in future? The information as well as format is attached

It is evident that cash is not being controlled well in the business. Identify two problems and provide advice to the owner as to how these problems can be avoided in future? The information as well as format is attached

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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