Q.1.5 It is evident that cash is not being controlled well in the business. Identify two problems and provide advice to the owner as to how these problems can be avoided in future. Transcribed Image Text: You have been provided with the following information from the books of Zebra Traders:
Information from the Bank Reconciliation Statements on the 30th April 2021
Balance as per bank statement (Favourable)
Add: Outstanding deposits:
10 April 2021
30 April 2021
Less: Outstanding cheques
2001: Dated 10 October 2020
2651: Dated 27 April 2021
2691: Dated 10 May 2021
Balance as per bank account (Favourable)
Cheque 2651 appeared on the bank statement for May 2021.
Deposit on the 30th April appeared on the May 2021 bank statement.
Cheque 2001 has to be cancelled as the charity organisation that it was given to no longer
The outstanding deposit of R8 500 was in respect of cash received from an outstanding
debtor. This deposit has not appeared on the May 2021 bank statement and it has been
discovered that this amount was recorded but it was never deposited. The owner has
authorised that this amount be written off as a loss to the business. The owner has also
undertaken to investigate who is responsible for this theft.
A comparison of the May 2021 bank statement and the May 2021 cashbooks revealed the
Bank charges of R530 were not recorded in the cashbooks.
Cheque number 2712 issued to creditor Mr. L lon, appeared correctly in the bank
statement as R5 630 but was incorrectly recorded in the Cashbook Payments as
A monthly stop order of R1 800 for insurance needs to be recorded in the
A dishonoured cheque for R2 355 appeared on the bank statement. This cheque
was received from Miss H Yena, a debtor in settlement of her account of R2 400.
O The Independent Institute of Education (Pty) Ltd 2021
Page 2 of 8 Transcribed Image Text: 21
Interest of R480 received from the bank was not recorded in the cashbook.
The following entries appeared in the cashbooks of Zebra Traders and not in the May Bank
R17 300 on the 17th May
R18 400 on the 31“ May
Cheques not yet presented for payment:
2785 for R6 500 dated 12th May 2021
2805 for R7 770 dated 25th June 2021
The bank statement balance as at 31st May 2021 is R20 815 favourable.
The totals of the cashbooks before any adjustments:
Cashbook receipts R8 500
Cashbook payments R4 500