FINANCIAL ACCOUNTING

MULTIPLE CHOICE QUESTION

Question 17

On comparison of the April 2020 bank statement with the cash journals for April 2020 of Gugu Traders it was noted that two transactions that were entered in the cash receipts journal on 30 April 2020 did not appear in the bank statement for April 2020. One transaction was for a cash sale of R4 000 and the other was for R8 000 which was received from a tenant.

Which one of the following alternatives is the correct entry regarding these two transactions?

A.

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2020

	Debit R	Credit R
Credit outstanding cheques..(4 000 + 8 000)		12 000

B.

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2020

	Debit R	Credit R
Debit outstanding deposits.......(4 000 + 8 000)	12 000

C.

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2020

	Debit R	Credit R
Debit outstanding deposits	8 000

D.

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2020

	Debit R	Credit R
Credit outstanding deposits...(4 000 + 8 000)		12 000

E.

BANK RECONCILIATION STATEMENT AS AT 30 APRIL 2020

	Debit R	Credit R
Debit outstanding deposits................................	4 000