Question one ( 1 ) ( a ) Briefly explain the importance of preparing a Bank reconciliation
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Question one
a Briefly explain the importance of preparing a Bank reconciliation statement. marks
b On st March, the Cash Book of G Global disclosed a balance of $ The Bank Statement showed a balance as at the same date of $
On checking entries in the Cash Book with the bank statement, it was ascertained that:
i Cheques amounting to $ were drawn on th March, of which cheques of $ were cashed before st March.
ii Cheques for $ were sent for collection out of which cheques for $ were credit by bank after st March.
iii An amount of $ paid directly into the merchant\'s account by a customer was not entered in the Cash Book.
iv On st March, cash was deposited into the bank $ but the cashier debited the bank account with $ by mistake.
v Dividend collected by bank on our behalf $ does not appear in the Cash Book.
vi $ is entered in the bank statement as bank charges. This was recorded as $ in the cash book.
You are required:
i to prepare the adjusted Cash Book, and marks
ii using the balance as per adjusted Cash Book prepare a Bank Reconciliation Statement. marks
c Identify three errors not revealed by the Trial Balance. marks
Question Two
a Explain the purpose of creating control account. marks
b At the end of May the owner of a business provided the following information.
Transaction Source of Information $
Total of payable balances on May
Total credit purchases
Total payments
Total discounts received
Total returns outwards
You are required to:
i Identify the source of information marks
ii Prepare the Purchase Ledger Control Account. marks
a Briefly explain the importance of preparing a Bank reconciliation statement. marks
b On st March, the Cash Book of G Global disclosed a balance of $ The Bank Statement showed a balance as at the same date of $
On checking entries in the Cash Book with the bank statement, it was ascertained that:
i Cheques amounting to $ were drawn on th March, of which cheques of $ were cashed before st March.
ii Cheques for $ were sent for collection out of which cheques for $ were credit by bank after st March.
iii An amount of $ paid directly into the merchant\'s account by a customer was not entered in the Cash Book.
iv On st March, cash was deposited into the bank $ but the cashier debited the bank account with $ by mistake.
v Dividend collected by bank on our behalf $ does not appear in the Cash Book.
vi $ is entered in the bank statement as bank charges. This was recorded as $ in the cash book.
You are required:
i to prepare the adjusted Cash Book, and marks
ii using the balance as per adjusted Cash Book prepare a Bank Reconciliation Statement. marks
c Identify three errors not revealed by the Trial Balance. marks
Question Three
a Explain the purpose of creating control account. marks
b At the end of May the owner of a business provided the following information.
Transaction Source of Information $
Total of payable balances on May
Total credit purchases
Total payments
Total discounts received
Total returns outwards
You are required to:
i Identify the source of information marks
ii Prepare the Purchase Ledger Control Account. marks
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