QUESTION 1
The following information related to the banking transactions of I.T.C for the month of March 2017:
Cash Book (bank columns only)
March March Cheque no
1 Balance b/ d 3540 1 Transfer to Deposit Account 4000
4 Sales 3800 2 Wages (420) 800
21 B Brush 700 9 Wages (421) 800
28 J Allen 1500 12 Purchases (422) 943
30 Sales 1600 15 Drawings (423) 500
16 Wages (424) 800
22 Stationery (425) 90
23 Wages (426) 850
30 Wages (427) 900
Bank Statement
Dr Cr Balance
N$ N$ N$
1 Balance b/d 3400 Cr
Transfer to Deposit 4000 460 Dr
2 P Hamper:
Refer to Drawer 150 610 Dr
5 Credit 3800
420 800 2390 Cr
12 421 800 1590 Cr
15 422 943
P Jacks C/T 2100 2747 Cr
18423 500 2247 Cr
19 424 800 1447 Cr
23 Bank Charges 450
B Brush 700 1697 Cr
25 Insurance D/D 200 1497 Cr
26426 850 647 Cr
29 Rent_- S/O 300 347 Cr
Required
a) Calculate the provisional cash book statement on 31 March 2017 and enter this in your answer book. Update the cash book entering any relevant additional items from the bank statement.
b) Prepare a bank reconciliation statement at 31 March 2015
QUESTION 2
You have the following details from the sales and purchases ledgers of a medium-sized business
N$
February 1 Total creditors 128 000
Total debtors 248 000
Transactions in February:
Cash Sale 12 000
Credit sale 249 000
Credit purchases 78 000
Cash purchases 5 000
Discounts received 2 500
Discounts allowed 2 800
Returns to suppliers 1 200
Returns to customers 800
Set offs (contras) 3 900
Bad debts written off in the month 600
Increase in provision for bad debts 1 000
Payments to Supplies 129 500
Receipts from customer 244300
TASKS
a) Prepare the purchase ledger control account as at 28 February
b) Explain the purpose of control accounts