On 1 February 2019 the bank account in the general ledger of Rush Retailers had a...

  

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On 1 February 2019 the bank account in the general ledger of Rush Retailers had a favourable balance of R1 350. Kim, the bookkeeper, correctly determined that the preliminary totals of the cash journals for February 2019 are as follows: - Total of the cash receipts journal R186 750 - Total of the cash payments journal R123 150 The cash journals are posted to the bank account in the general ledger after matching the journals with the bank statement. Kim received the bank statement ending 28 February 2019 on 4 March 2019. On comparing the bank statement with the cash journals the following differences were noted: 1. The bank statement showed a favourable balance of R25 425 at 28 February 2019. 2. The following cheques in the cash payments journal have not been presented at the bank; Cheque 709 R 2 680 Cheque 773 R 3 927 EFT 722 R 6 750 EFT 727 R17 968 3. Cheque 709 was issued on 17 August 2018 in favour of K Dala a creditor. The cheque is now stale and must be cancelled. K Dala was paid in cash during February 2019 and the cash payment was correctly recorded. 4. A comparison of the cash receipts journal with the bank statement revealed that a deposit of R72 300 has not yet been entered on the bank statement. 5. The following charges appeared on the bank statement but not yet entered in the journals: Service fees R762; and interest on overdraft R343. 6. The bank statement showed a deposit of R4 950 which was made by Rasch Traders, another client of the bank but erroneously entered on Rush Retailers bank statement. 7. The cash receipts journal showed a deposit of R39 625 by a debtor, S Ndlovu, while the correct amount of R37 925 appeared on the bank statement. 8. A cheque number 972 drawn by Rasch Traders for R7 550 appeared on Rush Retailers bank statement but not in their journals. 9. A receipt of R16 350 issued to G Lucky, a debtor, was incorrectly entered in the cash receipts journal as R14 100. 10. Cheque number 769 for R4 605 in favour of M Stone, a creditor, was issued but subsequently cancelled and not given to the creditor. Kim erroneously entered the cheque payment in the cash payments journal. Required: Prepare the following for Rush Retailers for the month ended 28 February 2019: 1.1 The supplementary cash receipts journal and the supplementary cash payments journal. Begin each journal with the relevant preliminary total provided above. Only the bank columns need to be completed. Total the bank column and post to the general ledger bank account. (8) 1.2 Complete the general ledger bank account and balance the account as at 28 February 2019. 1.3 The bank reconciliation statement at 28 February 2019. (4) (8) On 1 February 2019 the bank account in the general ledger of Rush Retailers had a favourable balance of R1 350. Kim, the bookkeeper, correctly determined that the preliminary totals of the cash journals for February 2019 are as follows: - Total of the cash receipts journal R186 750 - Total of the cash payments journal R123 150 The cash journals are posted to the bank account in the general ledger after matching the journals with the bank statement. Kim received the bank statement ending 28 February 2019 on 4 March 2019. On comparing the bank statement with the cash journals the following differences were noted: 1. The bank statement showed a favourable balance of R25 425 at 28 February 2019. 2. The following cheques in the cash payments journal have not been presented at the bank; Cheque 709 R 2 680 Cheque 773 R 3 927 EFT 722 R 6 750 EFT 727 R17 968 3. Cheque 709 was issued on 17 August 2018 in favour of K Dala a creditor. The cheque is now stale and must be cancelled. K Dala was paid in cash during February 2019 and the cash payment was correctly recorded. 4. A comparison of the cash receipts journal with the bank statement revealed that a deposit of R72 300 has not yet been entered on the bank statement. 5. The following charges appeared on the bank statement but not yet entered in the journals: Service fees R762; and interest on overdraft R343. 6. The bank statement showed a deposit of R4 950 which was made by Rasch Traders, another client of the bank but erroneously entered on Rush Retailers bank statement. 7. The cash receipts journal showed a deposit of R39 625 by a debtor, S Ndlovu, while the correct amount of R37 925 appeared on the bank statement. 8. A cheque number 972 drawn by Rasch Traders for R7 550 appeared on Rush Retailers bank statement but not in their journals. 9. A receipt of R16 350 issued to G Lucky, a debtor, was incorrectly entered in the cash receipts journal as R14 100. 10. Cheque number 769 for R4 605 in favour of M Stone, a creditor, was issued but subsequently cancelled and not given to the creditor. Kim erroneously entered the cheque payment in the cash payments journal. Required: Prepare the following for Rush Retailers for the month ended 28 February 2019: 1.1 The supplementary cash receipts journal and the supplementary cash payments journal. Begin each journal with the relevant preliminary total provided above. Only the bank columns need to be completed. Total the bank column and post to the general ledger bank account. (8) 1.2 Complete the general ledger bank account and balance the account as at 28 February 2019. 1.3 The bank reconciliation statement at 28 February 2019. (4) (8)

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