Question

Complete the Table by Choosing one of the following options to analyse each Transaction of Ben Bicycle Traders for February 2020

Yes – Debit entry

Yes- Credit Entry

No Entry

Transaction:

General Journal

Bank account (General Ledger)

Bank Reconciliation Statement

A comparison of the Bank Statement of Bicycle Traders for February 2020 with the Bank reconciliation Statement at 31 January 2020, and the Cash Reports for February 2020, revealed the following:

1. The Bank account at 31 January 2020 had an unfavourable balance of R11 000
2. The cash Reports of Feb 2020 reflected the following amounts:
   1. Total Cash Receipts of R45390
   2. Total Cash payments of R39650
3. The Bank Reconciliation statement at 31 January 2020 reflected the outstanding Deposit of 2 Debtors, Z. Bently for R4300 and A. Roggers for R3500 . The bank credited the deposit From Z Bently on 1 Feb 2020
4. On 5 Feb 2020 , it was discovered that the A.Roggers a Debtor , provided a Fictitious proof of payment on 31 January 2020 to the accountant of Bicycle Traders . The amount of R3500 was not deposited into the bank account .
5. An amount paid for telephone was entered incorrectly as R2509 in the cash payments report , but shown correctly as R2905 on the bank statement .
6. The following amount appeared on the bank statement but wasn’t recorded by the accountant in the cash reports
   1. Interest on a Fixed Deposit R895
   2. Stop Order for insurance R1245
7. On 29 Feb 2020, a tenant of Ben Bicycle, D Donald, paid R2000 of his total rental of R6500 in cash and the balance via EFT. The cash received and the EFT were correctly recorded by the entity. The accountant however only deposited the cash on 1 March 2020, the EFT immediately reflected in the Bank account
8. The bank statement reflected an unfavourable balance of R11506 on 29 Feb 2020

Answer 1

Bank Reconciliation statement as on Feb.28,2020
Balance as per Cash book (-11000+45390-39560)		-5260
Less:Fictitious deposit	-3500
Less: Short-debit of telephone pmt. check	-396
Add: interest on fixed deposits	895
Less:Cash not yet deposited(Feb 29)	-2000
Less: Stop order charges for insurance	-1245	-6246
Balance as per Cash book		-11506
Balance as per Bank		-11506
Rectification Journal entries in Ben's books	Debit	Credit
Debtor a/c-A.Roggers	3500
Cash		3500
Telephone charges	396
Cash		396
Cash	895
Interest revenue		895
Bank charges	1245
Cash		1245

Transaction:	General Journal	Bank account (General Ledger)	Bank Reconciliation Statement
The Bank account at 31 January 2020 had an unfavourable balance of R11 000		YES
The cash Reports of Feb 2020 reflected the following amounts:
Total Cash Receipts of R45390		YES
Total Cash payments of R39650		YES
The Bank Reconciliation statement at 31 January 2020 reflected the outstanding Deposit of 2 Debtors, Z. Bently for R4300 and A. Roggers for R3500 . The bank credited the deposit From Z Bently on 1 Feb 2020			YES
On 5 Feb 2020 , it was discovered that the A.Roggers a Debtor , provided a Fictitious proof of payment on 31 January 2020 to the accountant of Bicycle Traders . The amount of R3500 was not deposited into the bank account .	YES	YES	YES
An amount paid for telephone was entered incorrectly as R2509 in the cash payments report , but shown correctly as R2905 on the bank statement .	YES	YES
The following amount appeared on the bank statement but wasn’t recorded by the accountant in the cash reports
Interest on a Fixed Deposit R895	YES	YES
Stop Order for insurance R1245	YES	YES
On 29 Feb 2020, a tenant of Ben Bicycle, D Donald, paid R2000 of his total rental of R6500 in cash and the balance via EFT. The cash received and the EFT were correctly recorded by the entity. The accountant however only deposited the cash on 1 March 2020, the EFT immediately reflected in the Bank account	NO	NO	NO
The bank statement reflected an unfavourable balance of R11506 on 29 Feb 2020			YES