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