following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019: a. M&N Windows Ltd cash at bank ledger at 30 June 2019 is: $75,864 b. Credit balance as per bank statement as at 30 June 2019 is: $101,160 c. Bank statement shows an electronic transfer from a customer of $3,864 d. Deposits in transit, $12,540 e. Interest earned on bank account, $75 f. Unpresented cheques, $37,407 g. Service charge included in bank statement, $150 j for M&N Windows Ltd at 30 June 2019. (6 marks)

b) Discuss why a bank reconciliation is still necessary even most of the transactions take place using electronic transfer of funds nowadays. (2 marks

Questions InvisiGuard Ltd sells security doors. Majority of its sales are on credit except small amount of cas sales each year. The accounting records at 30 June 2019 reveal the following. Ignore GST. Credit sales (for the year of 2019) Cash sales (for the year of 2019) Credit sales returns and allowances (for the year of 2019) Accounts receivable (balance at 30 June 2019) Allowance for doubtful debts (credit balance at 30 June 2019) $2,100,000 20,000 80,000 593,000 2,800 The company's yearly bad debts expense had been estimated at 2.5% of net credit sales revenue in the past. The management of InvisiGuard Ltd has decided to compare the current method with an ageing of accounts receivable method. The following analysis was obtained with respect to the accounts receivable. Accounts not yet due Accounts overdue 10 - 30 days 31 - 60 days 61 - 120 days 121 days and over Balance $351,200 92,000 78,000 40,800 31,000 593,000 % of estimated uncollectable 1 3 10 30 60 Total Required: a) Prepare the journal entries to adjust the Allowance for Doubtful Debts at 30 June 2019 under the following two methods. (3 marks) 1. the net credit sales method ii the ageing of accounts receivable method, b) Prepare ledger account for the Allowance for Doubtful Debts account under both methods mentioned in a), using running balance format (2 marks) c) Assume that the allowance account had a debit balance of $980 at 30 June 2018, determine the bad debt expense for the year and the balance in the allowance account under ageing method (1 mark) d) Explain, with reference to your calculation, why the two different methods result in different balances. (2 marks) Questions InvisiGuard Ltd sells security doors. Majority of its sales are on credit except small amount of cas sales each year. The accounting records at 30 June 2019 reveal the following. Ignore GST. Credit sales (for the year of 2019) Cash sales (for the year of 2019) Credit sales returns and allowances (for the year of 2019) Accounts receivable (balance at 30 June 2019) Allowance for doubtful debts (credit balance at 30 June 2019) $2,100,000 20,000 80,000 593,000 2,800 The company's yearly bad debts expense had been estimated at 2.5% of net credit sales revenue in the past. The management of InvisiGuard Ltd has decided to compare the current method with an ageing of accounts receivable method. The following analysis was obtained with respect to the accounts receivable. Accounts not yet due Accounts overdue 10 - 30 days 31 - 60 days 61 - 120 days 121 days and over Balance $351,200 92,000 78,000 40,800 31,000 593,000 % of estimated uncollectable 1 3 10 30 60 Total Required: a) Prepare the journal entries to adjust the Allowance for Doubtful Debts at 30 June 2019 under the following two methods. (3 marks) 1. the net credit sales method ii the ageing of accounts receivable method, b) Prepare ledger account for the Allowance for Doubtful Debts account under both methods mentioned in a), using running balance format (2 marks) c) Assume that the allowance account had a debit balance of $980 at 30 June 2018, determine the bad debt expense for the year and the balance in the allowance account under ageing method (1 mark) d) Explain, with reference to your calculation, why the two different methods result in different balances. (2 marks)