Excel Products are one of your suppliers. Their account in your ledger is as follows:

Excel Products Account 20-9 14 Oct Purchase returns £
95 20-9 1 Oct Balance b/d £
1,350 29 Oct Bank 1,330 8 Oct Purchases 1,850 29 Oct Discount 20 22 Oct Purchases 1,050 30 Oct 31 Oct Purchase returns Balance c/d 75 2,730 4,250 1 Nov Balance b/d 4,250 2,730 On 2 November the following statement of account is received from Excel Products:
Statement ofAccount Debit Credit Balance 20-9 £
£
£
1 Oct Balance 2,775 3 Oct Bank 1,400 1,375 3 Oct Discount 25 1,350 6 Oct Sales 1,850 3,200 16 Oct Returns inwards 95 3,105 20 Oct Sales 1,050 4,155 28 Oct Sales 1,550 5,705 You are required to:

(a) Prepare a reconciliation statement, starting with the balance in your hooks of £2,730, to explain the difference between the balance in your ledger and the closing balance on the statement of account.

(b) Briefly explain why a supplier may disallow a cash discount.

(c) If the outstanding balance in your ledger on 1 November was settled less 2^ per cent cash discount:
(i) State the amount of discount.
(ii) State the amount of the cheque.