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Activity 1 Question 1 The following information has been taken from the books of Pisces Fisheries on 28 February 2019. Pisces Fisheries supplies upmarket restaurants with fresh seafood and is not registered as a VAT Vendor: The following bank reconciliation statement was drawn up on 31 January 2019: Favourable bank balance as per bank statement Outstanding deposits Outstanding cheques : No.400 No.765 No.767 Balance as per bank account R32 440 19 000 2450 7560 4560 ??? A comparison of the cashbooks for February 2019, the above bank reconciliation statement, and the Bank Statement for February 2019, show the following: 1. The provisional totals of the cashbooks on 28 February 2019 were as follows: Cashbook receipts R291 000 Cashbook payments R244 000 2. The following items that were included on the January bank reconciliation appeared respectively on the 2nd and 10th February on the Bank Statement: Deposit R19 000 and Cheque 767 3. Cheque No. 400 was issued to an old age home as a donation on 16 August 2018. 4. The following entries appeared on the Bank Statement but not in the cashbooks: A debit order in favour of ABC Insurers, R6 000 being the owner's private insurance premium. Two stop orders in favour of TooTrue Rental Agency for R12 000 as rent of the premises, and WideArea Network for R18 000 as cell phone charges. The following charges: commission on cheques, service fees and cash handling fees of R120, R250 and R55 respectively. D Focus . . 1. The provisional totals of the cashbooks on 28 February 2019 were as follows: Cashbook receipts R291 000 Cashbook payments R244 000 2. The following items that were included on the January bank reconciliation appeared respectively on the 2nd and 10th February on the Bank Statement: Deposit R19 000 and Cheque 767 3. Cheque No. 400 was issued to an old age home as a donation on 16 August 2018. 4. The following entries appeared on the Bank Statement but not in the cashbooks: A debit order in favour of ABC Insurers, R6 000 being the owner's private insurance premium. Two stop orders in favour of TooTrue Rental Agency for R12 000 as rent of the premises, and Wide Area Network for R18 000 as cell phone charges. The following charges: commission on cheques, service fees and cash handling fees of R120, R250 and R55 respectively. Interest received on current banking account, R74. A debtor, Adrian Appleberry, deposited R7 400 directly into the current banking account to settle his debt of R7 650. A dishonoured cheque for R1 750, originally received from a debtor, Neo Nape. The cheque was marked insufficient funds 5. Cheque No. 766 appeared in the Cashbook payments as R5 780 and on the Bank Statement as R7580. After an investigation, it was revealed that the amount on the Bank Statement was correct. This cheque had been issued for Stationery purchased on 18 February 2019. 6. A deposit of R17 500 appeared on the Bank Statement but not in the Cashbook receipts. An investigation revealed that the deposit was intended for Pisces Fish & Chips Market and not Pisces Fisheries. 7. The following entries appeared in the cashbooks but not on the Bank Statement: A deposit of R36 500 made by Pisces Fisheries on 27 February 2019. Cheque No. 821 for R7 460 issued to TopNotch Fisheries as part payment of their account. . . . . . Cheque No. 829 for R3 600 issued to The Ad Agency in payment of an advertisement placed in a local magazine. 8. On 28 February 2019, the Bank Statement revealed a credit balance of R53 439. Required 1.1. Record any differences, identified in the bank reconciliation process in the Cashbook receipts and Cashbook payments and total the cashbooks at month end. 1.2. Open, post to and balance the bank account in the general ledger. 1.3. Compile the bank reconciliation statement as at 28 February 2019. 1.4. 'Electronic banking makes it possible for businesses to control their cash flow at the click of a button.' In your opinion, what are the advantages electronic banking affords a business entity? BE . Focus *3 Activity 1 Question 1 The following information has been taken from the books of Pisces Fisheries on 28 February 2019. Pisces Fisheries supplies upmarket restaurants with fresh seafood and is not registered as a VAT Vendor: The following bank reconciliation statement was drawn up on 31 January 2019: Favourable bank balance as per bank statement Outstanding deposits Outstanding cheques : No.400 No.765 No.767 Balance as per bank account R32 440 19 000 2450 7560 4560 ??? A comparison of the cashbooks for February 2019, the above bank reconciliation statement, and the Bank Statement for February 2019, show the following: 1. The provisional totals of the cashbooks on 28 February 2019 were as follows: Cashbook receipts R291 000 Cashbook payments R244 000 2. The following items that were included on the January bank reconciliation appeared respectively on the 2nd and 10th February on the Bank Statement: Deposit R19 000 and Cheque 767 3. Cheque No. 400 was issued to an old age home as a donation on 16 August 2018. 4. The following entries appeared on the Bank Statement but not in the cashbooks: A debit order in favour of ABC Insurers, R6 000 being the owner's private insurance premium. Two stop orders in favour of TooTrue Rental Agency for R12 000 as rent of the premises, and WideArea Network for R18 000 as cell phone charges. The following charges: commission on cheques, service fees and cash handling fees of R120, R250 and R55 respectively. D Focus . . 1. The provisional totals of the cashbooks on 28 February 2019 were as follows: Cashbook receipts R291 000 Cashbook payments R244 000 2. The following items that were included on the January bank reconciliation appeared respectively on the 2nd and 10th February on the Bank Statement: Deposit R19 000 and Cheque 767 3. Cheque No. 400 was issued to an old age home as a donation on 16 August 2018. 4. The following entries appeared on the Bank Statement but not in the cashbooks: A debit order in favour of ABC Insurers, R6 000 being the owner's private insurance premium. Two stop orders in favour of TooTrue Rental Agency for R12 000 as rent of the premises, and Wide Area Network for R18 000 as cell phone charges. The following charges: commission on cheques, service fees and cash handling fees of R120, R250 and R55 respectively. Interest received on current banking account, R74. A debtor, Adrian Appleberry, deposited R7 400 directly into the current banking account to settle his debt of R7 650. A dishonoured cheque for R1 750, originally received from a debtor, Neo Nape. The cheque was marked insufficient funds 5. Cheque No. 766 appeared in the Cashbook payments as R5 780 and on the Bank Statement as R7580. After an investigation, it was revealed that the amount on the Bank Statement was correct. This cheque had been issued for Stationery purchased on 18 February 2019. 6. A deposit of R17 500 appeared on the Bank Statement but not in the Cashbook receipts. An investigation revealed that the deposit was intended for Pisces Fish & Chips Market and not Pisces Fisheries. 7. The following entries appeared in the cashbooks but not on the Bank Statement: A deposit of R36 500 made by Pisces Fisheries on 27 February 2019. Cheque No. 821 for R7 460 issued to TopNotch Fisheries as part payment of their account. . . . . . Cheque No. 829 for R3 600 issued to The Ad Agency in payment of an advertisement placed in a local magazine. 8. On 28 February 2019, the Bank Statement revealed a credit balance of R53 439. Required 1.1. Record any differences, identified in the bank reconciliation process in the Cashbook receipts and Cashbook payments and total the cashbooks at month end. 1.2. Open, post to and balance the bank account in the general ledger. 1.3. Compile the bank reconciliation statement as at 28 February 2019. 1.4. 'Electronic banking makes it possible for businesses to control their cash flow at the click of a button.' In your opinion, what are the advantages electronic banking affords a business entity? BE . Focus *3

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