2020 PHS 3N POA EOY P1 Q2
2 Anson Apples sells premium Fuji apples.
On 1 February 2020, the business had cash at bank balance of $1 900.
The following transactions took place in the month of February 2020.
2020 | |
Feb 7 | Bought goods at a list price of $8 500 from Sheranne Supplies by cheque. A trade discount of 4% was received. |
15 | Deposited office cash, $2 000, into the business bank account. |
24 | Received a cheque, $930, from Fabian Fruits, as full settlement of the amount owing $1 000. |
29 | Received commission income, $300, by bank transfer. |
REQUIRED
a. Prepare the cash at bank account for the month ended 29 February 2020. Bring down the balance to the next month.
[6]
b. Describe how the cash at bank balance on 1 March 2020 will be presented on the statement of financial position.
[1]
On 4 March 2020, Anson Apples was informed that the cheque received on 24 February 2020 was rejected by the bank.
c. Prepare the journal entries to record the transaction which took place on
4 March 2020. Narrations are not required.
[2]
d. State one reason why the cheque was rejected by the bank.
[1]
[TOTAL 10]
Bank overdraft in the current liabilities section.
- The information on the cheque is incomplete.
- The signature on the cheque does not match the bank records.
- The amount in figures and in writing differs.
- There is insufficient funds in the payer’s account.