1.1 Identify whether the following statements are TRUE or FALSE - NSC Accounting - Question 1 - 2023 - Paper 2
Question 1
1.1 Identify whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK.
1.1.... show full transcript
Worked Solution & Example Answer:1.1 Identify whether the following statements are TRUE or FALSE - NSC Accounting - Question 1 - 2023 - Paper 2
Step 1
1.1.1 A credit balance on the Bank Statement means that the business has a positive balance in the bank.
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Answer
True. A credit balance indicates that the business holds an excess of funds in the bank compared to what has been recorded in its own books.
Step 2
1.1.2 A debit card may be used to withdraw cash from an ATM.
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Answer
True. Debit cards are commonly used to access funds in a bank account, allowing users to make withdrawals at ATMs.
Step 3
1.1.3 A bank overdraft is a short-term loan that is transferred into the business's current bank account.
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Answer
False. A bank overdraft allows a business to withdraw more money than is available in its current account, essentially permitting short-term borrowing.
Step 4
1.2.1 Update the totals for the Cash Receipts Journal and Cash Payments Journal for April 2023.
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Answer
The updated totals are:
Cash Receipts Journal: 143,200
Cash Payments Journal: 237,000
These totals reflect all transactions within the specified time frame.
Step 5
1.2.2 Calculate the correct Bank Account balance on 30 April 2023.
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Answer
The correct Bank Account balance is calculated as follows:
Initial balance = 49,720 + 143,200 - 237,000 = -44,080.
The final balance should reflect all transactions processed by this date.
Step 6
1.2.3 Prepare the Bank Reconciliation Statement on 30 April 2023.
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Answer
The Bank Reconciliation Statement is as follows:
Balance per Bank Statement: 20,110
Outstanding Deposit: 22,500
Outstanding EFT: (note transaction # 884): 65,000
Errors: (negative values included for correction)
Total:
Corrected Closing Balance: 87,050.
This statement ensures that all figures align with the company's records.
Step 7
1.2.4 Violet noticed problems with the depositing of cash. Explain TWO measures that she can use to address these problems.
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Answer
To address the cash deposit issues, Violet can:
Implement a Routine Depositing Policy: Establish regular deposit schedules to minimize cash on hand and reduce the risk of loss or theft.
Employ Additional Staff for Deposits: Designate a reliable employee to manage cash deposits, ensuring accuracy and adherence to procedures.
