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1. Pushing'a Mafaelo Ltd prepared the following summary of receipts and payments account for the month of April 2021: Pushing'a mafaelo Ltd make all payments
1. Pushing'a Mafaelo Ltd prepared the following summary of receipts and payments account for the month of April 2021: Pushing'a mafaelo Ltd make all payments by cheques and all monies received are banked immediately. Before preparing bank reconciliation an investigation revealed the following: (i) The balance brought forward from March 2021 in the cash book should be ZMW750,000 and not ZMW770,000. (ii) A cheque drawn for ZMW128,000 for advertising had been incorrectly entered in the cash book as ZMW125,000. (iii) Dividends received in the month of April of zMW89 000 were credited by the bank but no entries were made in the cash book. (iv)Business rates are paid directly by the bank under a standing order arrangement. An amount of ZMW120,000 was paid on 30 April 2020 and no entries have been made in the cash book. (v) A cheque received from Kalyafye for ZMW207,000 had been returned by the bank and marked 'insuffficient funds'. No adjustment has been made in the cashbook. (vi)A cheque for ZMW35,000 for miscellaneous consumables was entered in the cashbook as a receipt instead of as a payment. (vii) Cheques received totalling ZMW807,000 had been entered in the cashbook and paid into the bank, but had not been credited by the bank until 3 May. (viii) Cheques drawn amounting to ZMW345,000 had not been presented to the bank for payment. (ix) Bank service charges of ZMW67,000 appearing on the bank statement have not been entered in the cashbook. 6 BANK RECONCILIATION PREPARED BY FRANCIS ZULU Required: (i) Calculate the closing balance that should appear on the cashbook taking into account the appropriate information from the investigation. (ii) Prepare a bank reconciliation statement as at 30 April 2020
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