Question three a) Cash is the most liquid assets which needs to be safeguarded. List common techniques employed to control cash. In you view which one is the most important explain (6 marks) b) The trial balance before adjustment for ZNBC shows the following balances ZNBC is in financial difficulties so to obtain money for operations, the following two options have been implemented Option 1: ZNBC has factored without guarantee of credit loss K360, 000 of accounts receivable with ABSA bank. The finance charge is 10% of the amount factored. Option 2: ZNBC has obtain a one-year loan of K990, 000 from zanaco. To facilitate this loan ZNBC has assigned K1,170,000 of specific receivable accounts to zanaco. The finance charge is 8% of the loan. Required i) Explain how Option 1 will be recorded in the books of ZNBC and Show the journal entries ( 5 marks) ii) Explain how Option 2 will be recorded in the books of ZNBC and Show the journal entries ( 5 marks) iii) Show the trial balance extract of the receivable section after adjustment in (i) and (ii) above are done. Assume that ZNBC wants to maintain Allowance for an collectables Accounts at 5% of sales revenue (4 marks) Total marks: 20 Question three a) Cash is the most liquid assets which needs to be safeguarded. List common techniques employed to control cash. In you view which one is the most important explain (6) marks) b) The trial balance before adjustment for ZNBC shows the following balances ZNBC is in financial difficulties so to obtain money for operations, the following two options have been implemented Option 1: ZNBC has factored without guarantee of credit loss K360, 000 of accounts receivable with ABSA bank. The finance charge is 10% of the amount factored. Option 2: ZNBC has obtain a one-year loan of K990, 000 from zanaco. To facilitate this loan ZNBC has assigned K1,170,000 of specific receivable accounts to zanaco. The finance charge is 8% of the loan. Required i) Explain how Option I will be recorded in the books of ZNBC and Show the journal entries ( 5 marks) ii) Explain how Option 2 will be recorded in the books of ZNBC and Show the journal entries ( 5 marks) iii) Show the trial balance extract of the receivable section after adjustment in (i) and (ii) above are done. Assume that ZNBC wants to maintain Allowance for an collectables Accounts at 5% of sales revenue (4 marks) Total marks: 20