1a) You have been asked to prepare the final accounts for W Smith, a sole trader, for the year ended 31 December 2013. W Smith has forwarded to you all books of prime entry and ledgers, and in addition has given you the following information: i) ii) Mr Smith had taken 2,000 out of the business bank account to take his wife on holiday. Up to last year the machinery and vehicle used in the business had been depreciated using the reducing balance method. W Smith thinks that they should now be depreciated using the straight-line method. 111) Mr Smith is confident, given his order book that the business will continue to operate in its present form for many years. iv) Mr Smith had purchased ten staplers, four flip charts and four packets of whiteboard markers which will be used in the business for the next couple of years. v) Mr Smith informs you that he has just found an unopened electricity bill for 900 which was for the quarter October to December 2013. Required In each case, identify and then explain the main accounting concepts being highlighted and indicate how each should be treated in the final accounts. (15 Marks) b) On 30th April 2016, Mary Wacheke's bank statement reflected a balance of sh. 922,260 while her cash book balance stood at sh. 1,607,000. On comparing the cash book with the bank statement, the following discrepancies were identified: ii. A cheque paid to a creditor for sh. 19,740 was entered as sh. 17,940 in the cash book. Dividends from investments received through the bank amounted to sh. 15,300 but were not entered in the cash book 111. bank. 1V. V. book. vi. Cheques drawn by Mary Wacheke totaling sh. 14,500 had not been presented to the Bank charges for sh. 1,600 were not yet entered in the cash book. Standing order payments amounting to sh. 112,400 had not been entered in the cash A cheque for sh. 13,000 received from a debtor had been returned by the bank marked "refer to drawer" but had not been written back in the cash book vii. The bank had not credited Mary Wacheke's account with receipts of sh. 119,700 paid into the bank on 30th April 2006. viii. Mary Wacheke had brought down her opening cash book balance of sh. 165,850 as debit balance instead of a credit balance. ix. A cheque of sh. 18,800 had been written back in the cash book but the bank had already honoured it. X. Mary Wacheke's customers had agreed to settle their debts by direct debit but the bank had credited some direct debits amounting to sh. 115,540 to another customer's account. Required: (1) A statement of Mary Wacheke's adjusted cash book balance.7.5 Marks) (ii) Bank reconciliation statement at 30th April 2016. (7.5 Marks)