4.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 4 - 2022 - Paper 2
Question 4
4.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK.
4.1.1... show full transcript
Worked Solution & Example Answer:4.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 4 - 2022 - Paper 2
Step 1
4.1.1 Debit card fees form part of bank charges.
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Answer
This statement is TRUE. Debit card fees are typically included in the overall bank charges as they are costs incurred by the bank for processing debit card transactions.
Step 2
4.1.2 Interest on overdraft is recorded in the Cash Receipts Journal.
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Answer
This statement is FALSE. Interest on an overdraft is typically recorded in the Cash Payments Journal, as it is an expense incurred by the business.
Step 3
4.1.3 A debit balance on the Bank Statement reflects a favourable balance.
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Answer
This statement is FALSE. A debit balance on a Bank Statement indicates that the account is overdrawn, meaning the business owes money to the bank, which is not a favourable financial position.
Step 4
4.2.1 Use the table provided in the ANSWER BOOK to calculate the final balance of the Cash Journals on 31 July 2022.
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Answer
To calculate the final balance of the Cash Journals, first total the Cash Receipts Journal (R101,200) and the Cash Payments Journal (R135,215).
Cash Receipts Journal Total = R101,200
Cash Payments Journal Total = R135,215
Total Cash Movement = R101,200 - R135,215 = -R34,015
The final balances as of 31 July 2022 need to reflect the adjustments for any outstanding amounts and confirmed payments.
Step 5
4.2.2 Calculate the correct bank balance in the ledger on 31 July 2022.
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Answer
The correct bank balance can be calculated as follows:
Start with the initial ledger balance on 1 July 2022: R53,800.
Add the total deposits: R109,960.
Subtract the total payments: R143,240.
The calculation is:
extFinalBankBalance=53,800+109,960−143,240=R20,520
Step 6
4.2.3 Prepare the Bank Reconciliation Statement on 31 July 2022.
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Answer
To prepare the Bank Reconciliation Statement, list the balance per Bank Statement and adjust for outstanding deposits, EFTs, and any errors identified.
Balance per Bank Statement: R71,020
Outstanding Deposits: R29,500
Outstanding EFT: R6,000
Errors: Adjustments for errors from Unitech College.
Finally, balance the debits and credits to ensure they match, leading to a reconciled figure.
