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This is an Analysed Cash Book and Personal Banking Question - Junior Cycle Business Studies - Question 5 - 2015
Question 5
This is an Analysed Cash Book and Personal Banking Question. Answer all parts of this question: Mary Kelly uses an Analysed Cash Book to keep a record of her house... show full transcript
Worked Solution & Example Answer:This is an Analysed Cash Book and Personal Banking Question - Junior Cycle Business Studies - Question 5 - 2015
Step 1
Prepare the Analysed Cash Book of Mary Kelly for the month of May 2015
Answer
To prepare the Analysed Cash Book for Mary Kelly, we will organize the transactions into a table with the specified headings for the Debit (Receipts) and Credit (Payments) sides.
Analysed Cash Book of Mary Kelly for May 2015
| Debit (Receipts) Side | € |
|---|---|
| Cash | |
| Opening Cash Balance | 750 |
| Received Monthly Pension | 940 |
| Lottery Win | 50 |
| Total | 1740 |
| Pension | |
| Opening Cash Balance | 0 |
| Received Monthly Pension | 940 |
| Total | 940 |
| Other | |
| Opening Cash Balance | 0 |
| Total | 0 |
| Credit (Payments) Side | € |
|---|---|
| Cash | |
| Paid for Groceries | 175 |
| Paid Gas Bill | 135 |
| Paid Charity Donation | 10 |
| Paid Fuel Bill | 145 |
| Paid Hairdresser | 40 |
| Paid Butcher | 90 |
| Paid for Groceries | 165 |
| Total | 760 |
| Housekeeping | |
| Paid Monthly House Insurance Bill | 30 |
| Paid Monthly Health Insurance Bill | 150 |
| Total | 180 |
| Light & Heat | |
| Insurance | |
| Other | |
| Total | 942 |
Balance Calculation
Total Receipts = 1740 Total Payments = 942 Balance = Total Receipts - Total Payments = 1740 - 942 = 798
Step 2
State three requirements that must be satisfied when opening a bank account.
Answer
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Proof of Address: A document such as a utility bill that verifies the applicant's residential address.
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Proof of Identity: Valid identification like a passport, driving license, or biometric ID.
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PPSN (Personal Public Service Number): This is required for tax and identification purposes.
Step 3
Outline two differences between a current account and a deposit account.
Answer
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Overdraft Facility: A current account may come with an overdraft facility allowing withdrawals beyond the account balance, while a deposit account typically does not allow such withdrawals.
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Payment Methods: Current accounts permit payments by direct debit, credit transfers, and issuing cheques, whereas payments from a deposit account must be a withdrawal from the balance.
Step 4
State and explain how her monthly pension would transfer into her bank account.
Answer
Mary's monthly pension payment is transferred directly into her bank account using Electronic Funds Transfer (EFT). This automatic process ensures timely receipt of funds each month without the need for her to deposit the cheque manually.
Step 5
Explain three different methods Mary might use to pay each of these bills from her new bank account.
Answer
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Gas: Mary can pay this bill using a Cheque, which instructs the bank to pay a specific amount to the gas supplier.
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Monthly Health Insurance: This can be settled through Direct Debit, allowing the insurance company to deduct variable amounts directly from Mary’s account on a scheduled basis.
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Groceries: Mary can use her ATM Card to withdraw cash from her bank account, which she can then use to pay for her groceries at the store.