Answer to Question #247769 in Accounting for SHAN

Question

The following information was taken from the accounting records of Fantasia Traders. REQUIRED 3.1 Complete the Cash Receipts Journal and Cash Payments Journal of Fantasia Traders for February 2020. All entries must indicate the correct contra ledger account in the Details column. Cast the Journals. Use the following format: (10) 3.2 Post to the Bank account in the General ledger. Balance the account. (4) 3.3 Prepare the Bank Reconciliation Statement as at 28 February 2020. (6)

Answer 1

Let the initial balance on the current account be 10,000.

Operations performed in a month:

• Paid to the supplier for materials 5,000: Debit settlements with suppliers credit settlement account
• Received funds from buyers for finished products - 50,000: Debit account credit settlements with customers
• Issued a sub-report for economic needs - 2000: Debit settlements with accountable persons credit settlement account
• Salary paid - 20 000: Debit settlements with staff credit settlement account
• Taxes paid - 3000 : Debit settlements with tax authorities credit settlement account.

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