The following information was extracted from the books of Choc Traders for the month of November 2020 Extract from the Bank Reconciliation Statement on 31 October 2020 R Balance as per bank statement avourable) 54000 Balance as per cash book funfavourable) 2000 Outstanding deposit (dated 29 October 2020) 16 500 Outstanding payments EFT NO 170 2.500 EFT no 178 22000 EFT no 183 8000 When comparing the bank statement from Mula Bank for November 2020 with the Bank reconciliation statement for October 2020, it was discovered that EFT no 178 appeared on the bank statement for payment on November 2020. EFT 183 ssa payment made to Young Accountant Associations donation. The Association has since sed down . A decor of R16 500 (dated 29 October 2020) appeared on the bank statement on 1 November 2020 On comparison of the bank statement from Mula Bank for November 2020 win the November 2020 Cash book, the following differences were noted 1 On 30 November 2020 the cash book showed an unfavourable balance of Rs 200 which not agree with the unfavourable balance on the bank statement received from MulaBank on 25 November 2000 2 No entry has been made in the books of Choc Traders for EFT no. 191 for R12000 dated 30 November 2020. paid in favour of Romme Traders for inventory purchased. This EFT did not appear on the bank statement as payment on 30 November 2020 other. 3. A deposit of R34 800 made on 28 November did not appear on the on the bank statement Cheque no. 195 for R7 000 issued to Nando Stores was lost. The cheque was stopped and replaced by cheque no. 199. The entries have been made in the cash book, but the cheque has not been presented to the bank for payment A cheque received from a debtor W. Winnie, was dishonoured by the bank due to insuficient funds The cheque was received in settement of her debt of R6 000 and a discount of R200 was allowed EFT payment for R16 700 made to a creditor Zara Traders appeared on the bank statement. The EFT was however, incorrectly recorded as R17 600 in the Cash book 7 Atenart had deposited the rent for November 2020, an amount of R4 000 directly into the business current account. No entry has been made in the cash book & A total amount of RB00 which included bank charges of R800 as well as interest on overdrat appeared on the bank statement on 28 November 2020. No entry was made in the cash book for these transactions deposit of R18 000 appeared on the bank statement of Choc Traders on 28 November 2020. Upon Investigation by the bank the deposit was made by Chic Traders JANUARY 2021: RF1XDIRF100 Page 1 of pages QUESTIONS (continued REQUIRED (a) Balance/dose of the Cash Book properly. Dutes are required Prepare and complete the Continuation of the Cash Book for Choc Traders for November 2020 07 b) Prepare the Bank nk Reconciliation Statement for Choc Traders for November 2020 (c) The owner of Choc Traders is not happy that her only bookkeeper who is in charge of managing al crediton, debtors, inventory control and all other booking tasks always makes late payments to their creditors or sometimes pays incorrect amounts which are always less than the creditor is owed. As a result, the business always incurs interest costs on creditors' accounts Brieyscuss any four measures that could be implemented by the business to avoid such costs in the future NOTE Show all workings clearly Work to the nearest R1 30 November 2020, paid in favour of Rommie Traders for inventory purchased. This EFT did not appear on the bank statement as payment on 30 November 2020 either. A deposit of R34 600 made on 28 November did not appear on the on the bank statement. 3. 4. Cheque no. 195 for R7 000 issued to Nando Stores was lost. The cheque was stopped and replaced by cheque no. 199. The entries have been made in the cash book, but the cheque has not been presented to the bank for payment. A cheque received from a debtor, W. Winnie, was dishonoured by the bank due to insufficient funds, The cheque was received in settlement of her debt of R6 000 and a discount of R200 was allowed. 5. 6 EFT payment for R16 700 made to a creditor, Zara Traders, appeared on the bank statement. The EFT was however, incorrectly recorded as R17 600 in the Cash book. 7 A tenant had deposited the rent for November 2020, an amount of R4 000, directly into the business's current account. No entr has been made in the cash book. 8 A total amount of R800 which included bank charges of R600 as well as interest on overdraft appeared on the bank statement on 28 November 2020. No entry was made in the cash book for these transactions. A deposit of R18 000 appeared on the bank statement of Choc Traders on 28 November 2020. Upon investigation by the bank the deposit was made by Chic Traders. QUESTION 5 (continued) REQUIRED: (a) Prepare and complete the Continuation of the Cash Book for Choc Traders for November 2020. Balance/close off the Cash Book properly. Dates are required. (7%) (b) Prepare the Bank Reconciliation Statement for Choc Traders for November 2020. (6%) (c) The owner of Choc Traders is not happy that her only bookkeeper who is in charge of managing all creditors, debtors, inventory control and all other bookkeeping tasks always makes late payments to their creditors or sometimes pays them incorrect amounts which are always less than what the creditor is owed As a result, the business always incurs interest costs on creditors' accounts Briefly discuss any four measures that could be implemented by the business to avoid such costs in the future. (4) NOTE Show all workings clearly Work to the nearest R1. The following information was extracted from the books of Choc Traders for the month of November 2020 Extract from the Bank Reconciliation Statement on 31 October 2020 R Balance as per bank statement avourable) 54000 Balance as per cash book funfavourable) 2000 Outstanding deposit (dated 29 October 2020) 16 500 Outstanding payments EFT NO 170 2.500 EFT no 178 22000 EFT no 183 8000 When comparing the bank statement from Mula Bank for November 2020 with the Bank reconciliation statement for October 2020, it was discovered that EFT no 178 appeared on the bank statement for payment on November 2020. EFT 183 ssa payment made to Young Accountant Associations donation. The Association has since sed down . A decor of R16 500 (dated 29 October 2020) appeared on the bank statement on 1 November 2020 On comparison of the bank statement from Mula Bank for November 2020 win the November 2020 Cash book, the following differences were noted 1 On 30 November 2020 the cash book showed an unfavourable balance of Rs 200 which not agree with the unfavourable balance on the bank statement received from MulaBank on 25 November 2000 2 No entry has been made in the books of Choc Traders for EFT no. 191 for R12000 dated 30 November 2020. paid in favour of Romme Traders for inventory purchased. This EFT did not appear on the bank statement as payment on 30 November 2020 other. 3. A deposit of R34 800 made on 28 November did not appear on the on the bank statement Cheque no. 195 for R7 000 issued to Nando Stores was lost. The cheque was stopped and replaced by cheque no. 199. The entries have been made in the cash book, but the cheque has not been presented to the bank for payment A cheque received from a debtor W. Winnie, was dishonoured by the bank due to insuficient funds The cheque was received in settement of her debt of R6 000 and a discount of R200 was allowed EFT payment for R16 700 made to a creditor Zara Traders appeared on the bank statement. The EFT was however, incorrectly recorded as R17 600 in the Cash book 7 Atenart had deposited the rent for November 2020, an amount of R4 000 directly into the business current account. No entry has been made in the cash book & A total amount of RB00 which included bank charges of R800 as well as interest on overdrat appeared on the bank statement on 28 November 2020. No entry was made in the cash book for these transactions deposit of R18 000 appeared on the bank statement of Choc Traders on 28 November 2020. Upon Investigation by the bank the deposit was made by Chic Traders JANUARY 2021: RF1XDIRF100 Page 1 of pages QUESTIONS (continued REQUIRED (a) Balance/dose of the Cash Book properly. Dutes are required Prepare and complete the Continuation of the Cash Book for Choc Traders for November 2020 07 b) Prepare the Bank nk Reconciliation Statement for Choc Traders for November 2020 (c) The owner of Choc Traders is not happy that her only bookkeeper who is in charge of managing al crediton, debtors, inventory control and all other booking tasks always makes late payments to their creditors or sometimes pays incorrect amounts which are always less than the creditor is owed. As a result, the business always incurs interest costs on creditors' accounts Brieyscuss any four measures that could be implemented by the business to avoid such costs in the future NOTE Show all workings clearly Work to the nearest R1 30 November 2020, paid in favour of Rommie Traders for inventory purchased. This EFT did not appear on the bank statement as payment on 30 November 2020 either. A deposit of R34 600 made on 28 November did not appear on the on the bank statement. 3. 4. Cheque no. 195 for R7 000 issued to Nando Stores was lost. The cheque was stopped and replaced by cheque no. 199. The entries have been made in the cash book, but the cheque has not been presented to the bank for payment. A cheque received from a debtor, W. Winnie, was dishonoured by the bank due to insufficient funds, The cheque was received in settlement of her debt of R6 000 and a discount of R200 was allowed. 5. 6 EFT payment for R16 700 made to a creditor, Zara Traders, appeared on the bank statement. The EFT was however, incorrectly recorded as R17 600 in the Cash book. 7 A tenant had deposited the rent for November 2020, an amount of R4 000, directly into the business's current account. No entr has been made in the cash book. 8 A total amount of R800 which included bank charges of R600 as well as interest on overdraft appeared on the bank statement on 28 November 2020. No entry was made in the cash book for these transactions. A deposit of R18 000 appeared on the bank statement of Choc Traders on 28 November 2020. Upon investigation by the bank the deposit was made by Chic Traders. QUESTION 5 (continued) REQUIRED: (a) Prepare and complete the Continuation of the Cash Book for Choc Traders for November 2020. Balance/close off the Cash Book properly. Dates are required. (7%) (b) Prepare the Bank Reconciliation Statement for Choc Traders for November 2020. (6%) (c) The owner of Choc Traders is not happy that her only bookkeeper who is in charge of managing all creditors, debtors, inventory control and all other bookkeeping tasks always makes late payments to their creditors or sometimes pays them incorrect amounts which are always less than what the creditor is owed As a result, the business always incurs interest costs on creditors' accounts Briefly discuss any four measures that could be implemented by the business to avoid such costs in the future. (4) NOTE Show all workings clearly Work to the nearest R1