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ACCOUNTING

  1. Extract from the Bank Reconciliation Statement on 31 October 2014:

 

Deposits not yet recorded:
12 October 2014 24 000
30 October 2014 12 760
Outstanding cheques:
No. 713                24 October 2014 7 880
No. 738                15 December 2014 15 400
Credit amount wrongly debited 2 500
Balance as per Bank Statement ?

 

  1. The following information appeared on the Bank Statement but the bookkeeper did not take this into account when calculating the balance of the bank account:

 

  • The Bank Statement showed an unpaid cheque for R2 710 which had been received from a debtor
  • A stop order, R1 650, for insurance
  • The Bank Statement reflected cheque 688 as R4 270 (the correct amount). This appeared incorrectly as R4 720 in the relevant Cash Journal.

BANK RECONCILIATION : Click above button to check information
As the internal auditor, you are presented with information on the Bank Reconciliation Statement of Manto Traders. The owner is Roy Pollus. Their financial year ends on 31 October 2014.
REQUIRED:
1.2.1
Refer to the figure of R24 000 in Information A.
The bank has no record of R24 000 ever being deposited. This money cannot be found.
• Explain how this loss would be treated in the books.
• Explain how Roy can prevent a loss of this nature in the future. Provide TWO points.

1.2.2
Refer to Information A and B:
The Bank account in the books of Manto Traders reflects a debit balance of R16 160 on 31 October 2014 before taking any adjustments into account.
Calculate the correct Bank account balance on 31 October 2014.

1.2.3
Give a suitable reason for the following entry from the Bank Reconciliation Statement:
Credit amount incorrectly debited, R2 500.

1.2.4
The office assistant of Manto Traders takes money from the cash register to make payments for business expenses. Explain why this is bad accounting practice, and provide ONE point of advice to Roy.

    • 1.2.1Explain how this loss of R24 000 would be treated in the books.Any ONE valid response PP

      Expected responses:

      • Enter in CPJ and describe as loss due to
      • Apply rule of prudence to reduce Bank and to record a

       

      Explain how Roy can prevent a loss of this nature in the future. Provide TWO points.

       

      Any TWO valid responses P P

       

      Expected responses:

      • Insist that all cash collected is deposited into the Bank
      • Division of  duties  where  one  person  collects  cash  and another deposits the cash
      • Check documentation on a daily basis; receipts must equal

 

1.2.2

Calculate the correct bank account balance on 31 October 2014.

16 160 P – 2 710 P – 1 650 P + 450 P – 24 000 P

= overdraft of 11 750 R one part correct

 

1.2.3

Give a suitable reason for the entry from the Bank Reconciliation Statement of the  amount  incorrectly  debited, R2 500.

Any suitable reason PP

Possible reasons:

  • The bank had in error shown a cheque of another client in the current banking account of the
  • The bank duplicated an entry (example bank charges, debit order) on the debit side of the bank statement.

1.2.4

The office assistant of Manto Traders takes money from the cash register to make payments for business expenses.

Explain why this is bad accounting practice.

 

Any valid explanation PP

 

Expected responses:

  • All cash must be deposited intact to ensure that internal control is not
  • This will lead to abuse and the possibility of fraud because there will be no authorisation or

 

Provide ONE point of advice to Roy.

 

Any ONE valid point PP

 

Expected responses:

  • Stop this practice immediately and use the petty-cash system for daily

PHYSICAL SCIENCE

2.1
State Newton’s Second Law of Motion in words.
(2)
2.2
Draw a labelled free-body diagram indicating ALL the forces acting on the 5 kg block.
(3)
2.3
Calculate the magnitude of the tension T1 in string P.
(6)
2.4
When the 250 N force is replaced by a sharp pull on the string, one of the two strings break.
Which ONE of the two strings, P or Q, will break?

2.1
When a resultant (net) force acts on an object, the object will accelerate in the direction of the force. This acceleration is directly proportional to the force and inversely proportional to the mass of the object.

OR

The net force acting on an object is equal to the rate of change of momentum  of the object (in the direction of the force).

2.2 Check Following Figure:

2.3 OPTION 1
Fn = ma
For 5 kg block/5 kg-
T2 + (-mg) + (-T1 )= ma
250 – (5)(9,8) – T1= 5 a 
201 – T1 = 5 a
T1 = 201 – 5a……..(1)
For 20 kg block/20 kg-
T1 + (-mg) = ma…….(2)
T1 + [-20(9,8)]  = 20a
5 = 25 a
a = 0,2 m∙s-2 upwards
∴ T1 = 201 – 5(0,2) 
= 200 N 
OR/ T1 = 20(9,8) + 20(0,2) 
= 200 N 

2.4 Q

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