The bookkeeper of Tanglewood Traders compared the June 2021 bank statement with he cash journals for June 2021 and noticed that a debit order of R5 500 for the monthly insurance premium to Blue Insurers only appeared in the bank statement of Tanglewood Traders.

Which one of the following alternatives is the correct entry for the debit order that only appeared on the May 2020 bank statement?

Select one:

A.

The debit order in favour of Blue Insurers will be entered on the debit side of the bank reconciliation statement as at 30 June 2021.

B.

The debit order of R5 500 in favour of Blue Insurers will be entered in the general journal of Tanglewood Traders for 30 June 2021.

C.The debit order of R5 500 in favour of Blue Insurers will be entered in the adjusted cash receipts journal of Tanglewood Traders for 30 June 2021.

D.

The debit order in favour of Blue Insurers will be entered on the credit sided of the bank reconciliation statement as at 30 June 2021.

E.

The debit order of R 5 500 to Blue Insurers will be entered in the adjusted cash payments journal of Tanglewood Traders for 30 June 2021.