Continuous Assessment Paper 2 - May 2020. Page 5 SECTION C CONTROL ACCOUNTS RECONCILIATION 15 MARKS QUESTION THREE (3) You are the senior bookkeeper of Munei & Shalom (Proprietor) Limited, also known as M&S Stores, and you are in charge of the clients and suppliers accounts. M&S Stores is a large manufacturing and retail company that manufactures and, sells clothing and shoes to the South African public through their 70 retail stores. M&S Stores has been affected by this novel (pandemic) which has caused their sales to go plummeting down. They cannot ship their current stock nor can they buy to produce more stock, debtors aren't able to pay since they have lost their jobs and creditors cannot be paid since the company has not recouped its money from clients. In these bad times, you have to remain strong and positive, since you have been assigned a task of mentoring a young aspired trainee accountant - Ms Cen. Ms Cen is trying to complete the debtors' and creditors' reconciliation for the month of April 2020 (first time in the corporate world) and she needs your help with the following adjustments: i. ii. iii. iv. B Bacela, an Account Receivable, is insolvent and 50c in the Rand on his account of R360 must be written off as bad. The balance of R405 on the account of Account Receivable D Dakalo was listed on the list of Accounts receivable as R450. The sales journal was over-cast by R5 990. Acredit note of R36, issued to S Shopo, was correctly recorded in the sales returns journal, but was debited to Account Receivable S Shopo's account as R63. The sundry journal credit entries include an amount of R10 000 being the balance of Jele's account written off as bad. The amount has not yet been posted to Jele's account. Included in the Accounts payable column of the cash payments journal is an amount of R20 225 in respect of a cheque marked "R/D". This cheque was originally received from Account Receivable B Buhle. The amount was posted to the account of B Buhle in the Accounts receivable' ledger V. vi. REQUIRED: 1) Compile a working paper; notifying her on what type of error has been committed on each of these transactions and where these transactions should be reconciled (corrected). Show amounts calculated. (10) (Please provide your answers on the templates supplied on annexure A). Continuous Assessment Paper 2 - May 2020. Page 16