(a) Using the information below, make the necessary entries in the ledger accounts of Crathes Crafts....

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(a) Using the information below, make the necessary entries in the ledger accounts of Crathes Crafts. Ledger balances as at 1 March 2013 Credit: R Cook Bank Overdraft Office Equipment 5 March 12 March 21 March 24 March 28 March £420 £850 £3,500 Bought goods on credit from R Cook £280 plus VAT Paid for repairs to office equipment by cheque - £150 plus VAT Bought new printers on credit from DB Office Supplies £960 plus VAT Paid R Cook £300 on account by cheque A faulty printer worth £320 plus VAT was returned to DB Office Supplies. (b) Each month Crathes Crafts receives a Bank Statement. Suggest 2 reasons why the closing balance on this statement rarely agrees with the closing balance in the Bank Account in the ledger. (c) As well as preparing a Profit and Loss Account, the owner of Crathes Crafts prepares a Cash Budget. Explain the importance of both to the efficient running of the business. (a) Using the information below, make the necessary entries in the ledger accounts of Crathes Crafts. Ledger balances as at 1 March 2013 Credit: R Cook Bank Overdraft Office Equipment 5 March 12 March 21 March 24 March 28 March £420 £850 £3,500 Bought goods on credit from R Cook £280 plus VAT Paid for repairs to office equipment by cheque - £150 plus VAT Bought new printers on credit from DB Office Supplies £960 plus VAT Paid R Cook £300 on account by cheque A faulty printer worth £320 plus VAT was returned to DB Office Supplies. (b) Each month Crathes Crafts receives a Bank Statement. Suggest 2 reasons why the closing balance on this statement rarely agrees with the closing balance in the Bank Account in the ledger. (c) As well as preparing a Profit and Loss Account, the owner of Crathes Crafts prepares a Cash Budget. Explain the importance of both to the efficient running of the business.

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