The following transactions of Africa Traders (not registered as a VAT vendor) only appeared in the bank statements and on non-cash journals of the entity where applicable, during the month ending February 2021: 1. Cash sales for the month - R10 500 2. Merchandise sold on credit to SA Traders - R600 3. Interest received from SA Bank deposited into the business bank account - R200 4. Paid R900 to SA Dealers 5. Security services debit order R2 400 6. SA Traders returned unfit merchandise with a selling price of R60. SA Traders purchased the merchandise on credit 7. Salaries paid - R1 000 8. Merchandise purchased on credit from SA Dealers - R1 000 9. Africa Traders' owner drew cash to the amount of R350 for own use What will the new total of the bank column in the Cash Payments Journal of Africa Traders at 28 February 2021 be? NB: Instructions 1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72) 2. Use a full stop to indicate any decimals (eg: 1000.01) 3. You must enter cents even if it is 0 (eg .00) 4. Only show the amount, do not show the R (eg: 12141.72)

The following transactions of Africa Traders (not registered as a VAT vendor) only appeared in the bank statements and on non-cash journals of the entity where applicable, during the month ending February 2021: 1. Cash sales for the month - R10 500 2. Merchandise sold on credit to SA Traders - R600 3. Interest received from SA Bank deposited into the business bank account - R200 4. Paid R900 to SA Dealers 5. Security services debit order R2 400 6. SA Traders returned unfit merchandise with a selling price of R60. SA Traders purchased the merchandise on credit 7. Salaries paid - R1 000 8. Merchandise purchased on credit from SA Dealers - R1 000 9. Africa Traders' owner drew cash to the amount of R350 for own use What will the new total of the bank column in the Cash Payments Journal of Africa Traders at 28 February 2021 be? NB: Instructions 1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72) 2. Use a full stop to indicate any decimals (eg: 1000.01) 3. You must enter cents even if it is 0 (eg .00) 4. Only show the amount, do not show the R (eg: 12141.72)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 19E

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On 17 January 2021, SA Traders, a debtor of Africa Traders, did a direct deposit payment of R11 000 in Africa Traders' bank account to settle its account. Africa Traders is not a registered VAT vendor. Which account will be debited, and which account will be credited in the general ledger of Africa Traders? Select one: O a. Debit the Bank account with R11 000, and credit the Trade receivables control account with R11 000. O b. Debit the Bank account with R11 000, and credit the Sales account with R11 000. O c. Debit the Sales account with R11 000, and credit the Bank account with R11 000. O d. Debit the Trade receivables control account with R11 000, and credit the Bank account with R11 000.
Please assist Show the adjustments as they should be recorded in the general ledger bank account of Mimosa General Dealers at 31 July 2021. Balance the bank account in the general ledger. A folio column is not required.
On 18 January 2021, SA Traders, a debtor of Africa Traders, did an electronic funds payment of R20 000 to Africa Traders to settle its account. Africa Traders is not a registered VAT vendor. Which account will be debited, and which account will be credited in the general ledger of Africa Traders? Select one: a. Debit the Bank account with R20 000, and credit the Sales account with R20 000. b. Debit the Sales account with R20 000, and credit the Bank account with R20 000. c. Debit the Bank account with R20 000, and credit the Trade receivables control account with R20 000. d. Debit the Trade receivables control account with R20 000, and credit the Bank account with R20 000.
individual customer and supplier. The management wishes to draft the related control accounts. Increase in allowance for doubtful debts (from GH¢1,750,000 to GH¢2,250,000) The following information is available. Receivables as on December 31 2018 Payables as on December 31 2018 accounting system where all separate ledger accounts are maintained for each Returns by customers from cash sales Returns by customers from credit sales Cash refund to a debtor who had paid the amount due twice Cheques received from suppliers against return of goods Cheques received from receivables in settlement of GH¢32,000,000 Cheques issued to suppliers in settlement of GH¢23,600,000 QUESTION 2 ABS Ltd has an GH¢ 2,600,000 4.100,000 23,350,000 14,360,000 550,000 31,650,000 180,000 35,900,000 320,000 980,000 27.700,000 120,000 Cash sales memos issued Goods returned to suppliers Credit sales invoices issued Goods purchased on credit 200,000 500,000 Bad debts written off Contra settlement between payables and…
Ablema has provided you with the following bank statement and bank account details in respect of the month ended 31 January 2018. Statement date - 31 January, 2018. Account No 1452800 Date Particulars Debit Credit Balance GH¢ GH¢ GH¢ 01-Jan-18 Balance forward 67,580 Cr 06-Jan-18 Cheque 597 120 67,460 Cr 06-Jan-18 Direct debit 2,020 65,440 Cr 12-Jan-18 Credit transfer 4,660 70,100 Cr 13-Jan-18 Cheque 600 1,420 68,680 Cr 14-Jan-18 Cheque 601 12,028 56,652 Cr 16-Jan-18 Lodgement 9,000 65,652 Cr 19-Jan-18 Cheque 599 18,004 47,648 Cr 23-Jan-18 Bank charges for December 2017 422 47,226 Cr 25-Jan-18 Quarterly interest received 62 47,288 Cr 27-Jan-18 Dishonoured cheque 1,600 45,688 Cr 27-Jan-18 Cheque 598 26,090 19,598 Cr 30-Jan-18 Cheque 603 5,048 14,550 Cr 31-Jan-18 Lodgement 14,500 29,050 Cr 31-Jan-18 Standing order: rent first quarter 2018 27,000 2,050 Cr The books and records of Ablema show the followings transactions through the bank account for the month of January 2018: Date Receipts…
DMCI Holdings, Inc. shows the following account balance in their financial records as ofDecember 31, 2019:Checking account at Manila bank, (P40, 000); Checking account at land Bank, P1, 000, 000;Payroll account National Bank, P200, 000; Foreign bank account-restricted, P1, 500, 000;Postage stamps, P44, 660; Employees post-dated checks, P60, 000; I.O.U. from president’sbrother, P150, 000; traveler’s check, P100, 000; DAUD checks, P36, 000; Petty cash fund (P32,000 in currency & expenses receipts for P168, 000), P200, 000; and Cashier’s checks, P72,000. The correct cash balance to be reported in the balance sheet of DMCI on December31,2019 is ________.a.P1, 572, 000 b. P1, 682, 000 c. P1, 440, 000 d. P1,404,000
The following information of Mimosa General Dealers for July 2021 has been provided to you: •The debit balance per the bank account at 31 July 2021 was R6 250. •Bank charges of R130 appeared on the bank statement. •A deposit had been recorded on the bank statement as R620 instead of R820. The deposit slip submitted to the bank had been correctly prepared and recorded in the cashbook. •The bank statement showed a deposit of R600, of which Mimosa General Dealers had no details. It was determined that this deposit was from a debtor who had deposited the amount directly into the bank account of the business. •A receipt for a payment received from the insurance company of R1 800 was recorded on the incorrect side of the cashbook. •The DSTV subscription payable by the business for R90 was one of the debits on the bank statement. •An insurance premium direct debit of R300 appeared on the bank statement in July. Upon enquiring with the bank it was determined that the premium should have been…
The following information of Mimosa General Dealers for July 2021 has been provided to you: • The debit balance per the bank account at 31 July 2021 was R6 250. • Bank charges of R130 appeared on the bank statement. • A deposit had been recorded on the bank statement as R620 instead of R820. The deposit slip submitted to the bank had been correctly prepared and recorded in the cashbook. • The bank statement showed a deposit of R600, of which Mimosa General Dealers had no details. It was determined that this deposit was from a debtor who had deposited the amount directly into the bank account of the business. • A receipt for a payment received from the insurance company of R1 800 was recorded on the incorrect side of the cashbook. • The DSTV subscription payable by the business for R90 was one of the debits on the bank statement. • An insurance premium direct debit of R300 appeared on the bank…
In the draft accounts for the year ended 31st August, 2020 of Azay Ltd, the balance at the bank according to the cash book was a credit balance of GH¢894,680. Subsequently, the following discoveries were made: a. Bank commission charged of GH¢169,560 and bank interest charged of GH¢109,100 have been entered in the bank statement on 23 August, 2020 but not included in the cash book b. Cheque for GH¢17,500 has been recorded twice as a credit in the cash book. c. Traders’ credits totalling GH¢210,000 have been credited in the bank statement on 26 August, 2020but not yet recorded in the cash book. d. A cheque payment of GH¢145,000 has been recorded in the cash book as a receipt. e. Cheque dated 3 July, 2020 for GH¢310,840 in favour of Akos Ltd has been correctly recorded in the bank statement, but included in the cash book payments as GH¢310,840. f. Cheques paid according to the cash book during August 2020 and totaling GH¢400,500 were not…
The following were extracted from the books of Nairobi Exports Limited. Compile debtor’s ledger and creditor’s ledger control accounts for the month, and ascertain what the net balances of the respective ledgers should be on 31 January2020. Balances on 1 January 2021 Kshs. Debtor’s ledger – Dr 46,462 Cr 245 Creditor’s ledger – Dr 1,472 Cr 25,465 Total for the month to 31 January 2021 Kshs. Purchases 76,474 Sales 126,024 Purchase returns 2,154 Debtors accounts settled by contra accounts with creditors…
The following information was taken from the books of Underwood Traders for December 2019and January 2020:Items appearing on the bank reconciliation statement of Underwood Traders as at 31 December 2019Bank Reconciliation Statement of Underwood Traders as at 31st December 2019Details Amount (R) Balance per bank statement (favourable) 405 670Outstanding cheques: No CQ221 6 780No CQ276 12 450No CQ298 21 560No CQ305 13 240 Outstanding deposit: DS205 18 700Correction of bank error on Deposit DS200‐ amount overstated by Bank 2 500Balance per Bank account( favourable) 367 840Cheque counterfoils of Underwood Traders‐ January 2020Date Cheque Counterfoil no. Amount (R)3 CQ306 6 54012 CQ307 2 41016 CQ308 12 50017 CQ309 23 56020 CQ310 1 47021 CQ311 3 26022 CQ312 15 32023 CQ313 27 65026 CQ314 8 95029 CQ315 2 250103 91020 2020Deposit slips of Underwood Traders‐ January 2020Date Deposit Slip no. Amount (R)5 DS206 8 90012 DS207 32 40018 DS208 17 43020 DS209 9 65021 DS210 27 89022 DS211 36 540132…
The following information was taken from the books of Underwood Traders for December 2019and January 2020:Items appearing on the bank reconciliation statement of Underwood Traders as at 31 December 2019Bank Reconciliation Statement of Underwood Traders as at 31st December 2019Details Amount (R) Balance per bank statement (favourable) 405 670Outstanding cheques: No CQ221 6 780No CQ276 12 450No CQ298 21 560No CQ305 13 240 Outstanding deposit: DS205 18 700Correction of bank error on Deposit DS200‐ amount overstated by Bank 2 500Balance per Bank account( favourable) 367 840Cheque counterfoils of Underwood Traders‐ January 2020Date Cheque Counterfoil no. Amount (R)3 CQ306 6 54012 CQ307 2 41016 CQ308 12 50017 CQ309 23 56020 CQ310 1 47021 CQ311 3 26022 CQ312 15 32023 CQ313 27 65026 CQ314 8 95029 CQ315 2 250103 91020 2020Deposit slips of Underwood Traders‐ January 2020Date Deposit Slip no. Amount (R)5 DS206 8 90012 DS207 32 40018 DS208 17 43020 DS209 9 65021 DS210 27 89022 DS211 36 540132…