ACTIVITY

QUESTION 1 GIVE THE CORRECT TERM FOR THE FOLLOWING STATEMENTS

1.1

1.2

1.3

1.4

1.5

Charges made by the bank against the account holder in order to Operate the banking account eg. service fees, levies, taxes etc. ANSWER______________ Money paid directly into a persons banking account, either electronically or manually. ANSWER______________ An instruction to a bank, signed by the drawer, to pay a specific sum of money to another person or organization. ANSWER______________ Summary of your banking transactions that the bank sends you monthly. ANSWER______________ A cheque that the bank refuses to pay the payee because the drawer has insufficient funds in his current account. ANSWER_______________

QUESTION 2 FILL IN THE BLANKS 2.1 A _________ cheque is older than 6 months and must be cancelled in the ________ journal. 2.2 An _________ account is designed for saving money for a longer period of time and generates a higher rate of return. 2.3 The primary purpose of internal control is to minimize _______ and eliminate ________. 2.4 When and entry appears in the CPJ but not on the bank statement, it will then be reconciled in the __________. 2.5 A _______ cheque is dated for the future and issued to a ________.

QUESTION 3 State 5 reasons why a drawer would stop payment of a cheque at the bank. (a)________________________________________________________ (b)________________________________________________________ (c)________________________________________________________ (d)________________________________________________________ (e)________________________________________________________