You obtained a payroll summary for all employees at AC Stores for January 20.7: Employees contribution towards the pension fund, R168 000 Employer's contribution towards the pension fund, R168 000 Taxation (PAYE) deductions, R369 600 Medical aid fund deductions, R24 000 Medical aid fund contributions by the employer, R12 000 Net remuneration paid, R1 400000 On 6 February 20.7 the payroll clerk drafted a journat entry to derecognise the January payroll creditors. Which ONE of the following is the correct amount with which the Bank account would nave been credited?

To determine the correct amount with which the Bank account would have been credited when derecognizing the January payroll creditors, we need to analyze the payroll summary provided. ### Known Conditions: 1. **Employees' contribution towards the pension fund:** R168,000 2. **Employer's contribution towards the pension fund:** R168,000 3. **Taxation (PAYE) deductions:** R369,600 4. **Medical aid fund deductions:** R24,000 5. **Medical aid fund contributions by the employer:** R12,000 6. **Net remuneration paid:** R1,400,000 ### Step-by-Step Calculation: 1. **Total Payroll Expenses:** - This includes the net remuneration paid, employees' contributions, and employer's contributions. - Total Payroll Expenses = Net Remuneration + Employees' Contribution + Employer's Contribution - Total Payroll Expenses = R1,400,000 + R168,000 + R168,000 2. **Calculate Total Payroll Expenses:** \[ \text{Total Payroll Expenses} = R1,400,000 + R168,000 + R168,000 \] 3. **Calculate the Total Amount Credited to the Bank Account:** - The amount credited to the Bank account would be the net remuneration paid, as this is the amount that actually leaves the bank. - Therefore, the Bank account would be credited with the net remuneration paid. Now, let's perform the calculations. ### Performing the Calculation: \[ \text{Total Payroll Expenses} = R1,400,000 + R168,000 + R168,000 \] Calculating this gives: \[ \text{Total Payroll Expenses} = R1,400,000 + R336,000 = R1,736,000 \] However, the amount credited to the Bank account is simply the net remuneration paid, which is R1,400,000. ### Conclusion: The correct amount with which the Bank account would have been credited is **R1,400,000**.