3.3. Bank reconciliation
A subsection of Accounting, 7707, through 3. Verification of accounting records
Listing 10 of 28 questions
MG has been in business for a number of years as a furniture manufacturer. On 31 August 2022 the bank column of his cash book showed the business had $25 600 in the bank account. The bank statement on this date showed a credit balance of $24 815. The following transactions were included only in the cash book. $ Cheque paid to JW Cheque received from TH In addition, an error had been identified. A standing order for rates of $205 had incorrectly been recorded in the cash book as $255. The following transactions were included only on the bank statement. $ Dishonoured cheque received from RJ Insurance paid by direct debit Bank charges REQUIRED Update the cash book of MG. Bring down the updated balance on 1 September 2022. MG Cash book (bank columns only) Date Details $ Date Details $ Prepare a bank reconciliation statement at 31 August 2022. MG Bank reconciliation statement at 31 August 2022 State two reasons why a business would prepare a bank reconciliation statement. State two possible reasons why the cheque from RJ was dishonoured. Explain the differences between a direct debit and a standing order. A potential new customer has asked MG for a 5% discount on any orders placed. Advise MG on whether to accept or decline these terms. Justify your answer.
7707_w22_qp_22
THEORY
2022
Paper 2, Variant 2
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Questions Discovered
28