Prepare the bank account in the general ledger on 31 May 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare the bank account in the general ledger on 31 May 2021.
Transcribed Image Text:BANK
B5
DATE
DETAILS
FOL
AMOUNT
DATE
DETAILS
FOL
AMOUNT
Transcribed Image Text:Interest of R480 received from the bank was not recorded in the cashbook.
ou have been provided with the following information from the books of Zebra Traders:
Information from the Bank Reconciliation Statements on the 30th April 2021
The following entries appeared in the cashbooks of Zebra Traders and not in the May Bank
Statement:
Balance as per bank statement (Favourable)
17 200
Outstanding deposits:
Add: Outstanding deposits:
10 April 2021
R17 300 on the 17th May
00s 8
400 on the 31" May
30 April 2021
00S 87
Less: Outstanding cheques
2001: Dated 10 October 2020
Cheques not yet presented for payment:
(2 220)
2651: Dated 27 April 2021
(4 150)
2785 for R6 500 dated 12th May 2021
2691: Dated 10 May 2021
(11330)
2805 for R7 770 dated 25th June 2021
Bálance as per bank account (Favourable)
36 500
The bank statement balance as at 31st May 2021 is R20 815 favourable.
Cheque 2651 appeared on the bank statement for May 2021.
The totals of the cashbooks before any adjustments:
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 longer
Cashbook receipts R8 500
exists.
Cashbook payments R4 500
The outstanding deposit of R8 500 was in respect of cash received from an outstanding
debtor. This deposit has not appeared on the May 2021 bank statement and it has been
discovered that this amount was recorded but it was never deposited. The owner has
authorised that this amount be written off as a loss to the business. The owner has also
undertaken to investigate who is responsible for this theft.
A comparison of the May 2021 bank statement and the May 2021 cashbooks revealed the
following:
Bank charges of R530 were not recorded in the cashbooks.
Cheque number 2712 issued to creditor Mr. L lon, appeared correctly in the bank
statement as R5 630 but was incorrectly recorded in the Cashbook Payments as
R6 530.
A monthly stop order of R1 800 for insurance needs to be recorded in the
cashbook.
A dishonoured cheque for R2 355 appeared on the bank statement. This cheque
was received from Miss H Yena, a debtor in settlement of her account of R2 400.
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