6. The following statements relate to cash transactions:

(a) All transactions dealing with cash received is entered into the cash receipts journal.

(b) Irrespective of how many entries there may be in the cash receipts journal, only the total of each column will need to be posted to the relevant general ledger account, except for the sundries column where entries will be posted individually.

(c) Under a perpetual inventory system, the cost of goods sold is recorded as each transaction takes place. When goods are sold for cash a column in the cash receipts journal is added to collect the data regarding cost price.

(d) Only original receipts can be used as source documents to record transactions in the cash receipts journal.

Which one of the following groups correctly reflects all the statements that are true?

(1) (a), (b), (c)

(2) (a), (b), (d)

(3) (c), (d)

(4) (b), (d)

(5) (a), (b), (c), (d)

7. The following statements relate to a bank reconciliation:

(a) Amounts deposited directly into the current account of the entity by third parties, will have to be entered on the cash payments journal when the bank reconciliation is being done.

(b) Bank charges and debit orders that appear on the bank statement of the entity but not in the bank account, in the general ledger, of the entity will have to be entered onto the cash receipts journal when the bank reconciliation is being done.

(c) Errors made by the bank will have to be corrected by the bank and will appear nowhere when the bank reconciliation is being done.

(d) A credit balance in the bank statement and a debit balance in the entitys bank account in the ledger show a favourable bank balance. Which one of the following groups correctly reflects all the statements that are true?

(1) (a), (b), (c)

(2) (a), (b), (d)

(3) (c), (d)

(4) (b), (d)

(5) Only (d)