note that the two pictures make a question

QUESTION 5 Amankwah Enterprise has been in business for so many years and has developed a very good relationship with its banker as a result of trust and excellent satisfactory services the bank offers. Due to this, the proprietor, Mr Amankwah is of the opinion that preparation of bank reconciliation is waste of time since his banker is honest and has proved that all his business money is safe. As a business advisor, do you agree or disagree with him? (6 marks) b). On 31st December, 2008 Amankwah Enterprise received the monthly bank statement of December, 2008 which contained the following transactions. Bank Statement December, 2008 DR CR 62,800 75,000 1 Balance b/d 2 Cash 12 Cash 14 Cheque (41002) 14 Sundries 15 Cheque (41003) 19 Cash BALANCE C 494,240 CR 557,040CR 32,040CR 601,540CR 614,100CR 554,100CR 589,100CR 30,500 12,560 60,000 35,000 26 Cash 85.000 674.100CR 29 Cheque (41005) 48.000 626,100CR 30 Bank charges 4.550 31 Credit transfer 621,550CR 12.800 634,350CR The cash book for the same period also contained the following Cash Book DR CR December, 2008 December 2008 1 Balance b/d 494,240 2 A. Ali 71,650 5 Sales 62,800 13 Way Ltd 30,500 12 Sales 75,000 15 Cash (41003) 60,000 14 Ache 12,560 29 B. Simons (4100) 120,000 19 Sales 35.000 31 Francis (41005) 48,000 26 Sales 85,000 31 Bal cld 449,390 31 Anas 14,940 779,540 779,540 Jan., 2009 Bal b/d 449,390 You are required to prepare i). Adjusted cash book (5 marks) ii). Bank reconciliation statement for the month of December, 2008. (5 marks) iii) Bank reconciliation is needed to identify and account for the differences between the cash book and the bank statement. These differences fall into three categories. Identify and explain them. (4 marks)