Question

QUESTION 3 BANK RECONCILIATION (20 MARKS) 3.1 The following information was extracted from the accounting records of Swanky Traders. REQUIRED Prepare the Bank account in the Ledger of Swanky Traders for March 2019 showing the entries from the information below that would have been made in the Cash Journals. Show clearly the contra account for each entry. Balance the Bank account The Cash Joumals are not required. Use the following format BANK ACCOUNT 2019 Mar 31 Balance 3.2 Prepare the Bank Reconciliation Statement as at 31 March 2019. 1. INFORMATION A comparison of the bank statement for March 2019, received from AB Bank, with the March Cash Journals and the Bank Reconciliation Statement as at 28 February 2019 revealed the following which must be taken into account: 1.1 1.2 2. 3. Cheque numbers 43 and 75 for R500 and R4 000 respectively were not presented for payment at the bank during 28 February 2019. A deposit for R1 600 on 28 February 2019 appeared in the Cash Receipts Journal only. The deposit made by Swanky Traders on 28 February 2019, R1 600, was credited in the bank statement for March 2019. Cheque no. 75 did not appear in the Bank statement for March 2019. Cheque no. 43, issued to AB Stationers for stationery, has been lost by the payee. A cancellation entry is required in the journals of Swanky Traders. A new cheque wil be issued on 01 April 2019. The bank account in the ledger had a credit balance of R15 600 on 31 March 2019 before the Bank statement was received The bank statement reflected an overdraft of R11 920 on 31 March 2019. AB Bank transferred an amount of R1 800 for interest on fixed deposit into the account of Swanky Traders. This has not yet been recorded. Cheque no. 78 issued to VB Traders for equipment purchased was incorrectly recorded in the Cash Payments Journal as R3 600. The bank statement reflected the correct amount of R2 160

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1 Discuss the five macroeconomic goals of south africa and why they are important.

2. Distinguish between gross donestic product and gross national product

Answer 1

1. According to the survey reports, Almost 55.5% of the people are living below the poverty line. The Government of South Africa takes many improvement measures to eradicate the poverty as 43.5% of adults above age of 35 suffering with the problem of unemployment. Macroeconomic policies acts as a best tool for economic policy framers which helps to eradicate the poverty evils. Before framing the policy few macroeconomic goals are to be considered. The South African Government actually implements the economic welfare plan with the support of such macroeconomic goals. They are

1) Poverty Reduction:- In order to attain the basic requirements of food, shelter and clothing, the focus of poverty is very important one to create the situation of improving the standard of living of the people who are living below the poverty line. It is obviously paves the way for economic development too.

2) Generating more employment opportunities:- Employment offer is the only source of income through every people living in the economically backward regions. It will actually increase the purchasing power of the people who are cannot able to afford even to buy the basic goods.

3) Restructuring employment:- Some employment are purely guaranteed on temporary basis. i.e employing the economically weaker section people in temporary sanitary work, daily laborers in agricultural production. So Government need to scrutinize the status of the seasonal employment.

4) Increasing International trade:- For trade surplus and to earn high exchange reserves, Government should adopt the policy of signing agreements between all the countries and to attract all countries.

5) Economic Development:- It should focus on standard living of the people, healthy balance of payments in order to promote economic development.

2) Gross Domestic Products:- GDP refers to the value of all goods and services during the specific period of time.

Gross National Products:- It refer to the value of all goods and services during the specific period of time plus Net property value from Abroad countries.