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The owner, Ben Joseph, realises that many people are now using electronic funds transfers (EFTs) instead of cheques - NSC Accounting - Question 2 - 2019 - Paper 1
Question 2
The owner, Ben Joseph, realises that many people are now using electronic funds transfers (EFTs) instead of cheques. 2.1 State THREE advantages of EFTs. 2.1.1 Jan... show full transcript
Worked Solution & Example Answer:The owner, Ben Joseph, realises that many people are now using electronic funds transfers (EFTs) instead of cheques - NSC Accounting - Question 2 - 2019 - Paper 1
Step 1
State THREE advantages of EFTs.
Answer
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Less Fraud: Electronic funds transfers reduce the chances of fraud compared to paper checks, as they are harder to forge or alter.
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Convenient or Easy to Use: EFTs can be completed quickly from any location with internet access, eliminating the need to visit a bank in person.
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Instant Payment Processing: Payments are processed immediately, allowing for faster access to funds and eliminating the lengthy wait times associated with traditional cheque processing.
Step 2
Explain TWO reasons why the internal auditor is concerned about this.
Answer
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Too Many Related Job Functions: The internal auditor may be concerned that assigning Janet both processing and control functions may lead to conflicts of interest, as there are no checks or balances in place.
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Lack of Supervision: If Janet is absent, there may be no adequate oversight of the EFT transactions, leading to potential misuse of funds or transactions being made without proper authorization.
Step 3
Step 4
Calculate the correct Bank Account balance on 30 June 2019.
Answer
To calculate the correct bank account balance, we start with the bank statement balance, add outstanding deposits, and subtract outstanding cheques:
- Bank Statement Balance: R9,200
- Add Outstanding Deposit: R9,675
- Subtract Outstanding Cheques: R1,125
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- R4,670
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- R4,580
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- R250
Total Outstanding Cheques: R11,225
Calculation:
Correct Bank Account Balance = Bank Statement Balance + Outstanding Deposit - Total Outstanding Cheques = R9,200 + R9,675 - R11,225 = R7,650
Step 5
Prepare the Bank Reconciliation Statement on 30 June 2019.
Answer
Bank Reconciliation Statement on 30 June 2019
| Item | Amount (R) |
|---|---|
| Cr Balance per Bank Statement | 9,200 |
| Add Outstanding Deposit | 9,675 |
| Less Outstanding Cheques | -11,225 |
| Cr Incorrect Entry | 1,125 |
| Balance Per Bank Account | 7,650 |
Notes:
- The balancing figure confirms that the calculations align, ensuring the bank account reflects accurate transactions.