QUESTIONS 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 31 December, 2008 Amankwah Enterprise received the monthly bank statement of December, 2008 which contained the following transactions Bank Statement December 2008 DR CR BALANCE c 1 Balanced 494.240 CR 2 Casli 62.800 557,04%CR 12 Cash 75.000 62.040CR 14 Cheque 141002) M_500 601 5400R 14 Sundries 12.560 614.10XCR 15 Cheque (41003) 60,000 554,100CR 19 Cash 35,000 589.100CR 5.000 674.10XCR 29 Cheque (41005) 48.000 626, 1000R 30 Bank charges 4,550 21.550CR 31 Credit transfer 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 bd 494240 2 A. Ali 71.650 Sales 62.01 W Lid 10 12 Sales 75,000 15 Cash (41003) 60.000 14 Ache 12.560 29B. Simons (4100) 120,000 19 Sales 35.000 31 Francis (41005) 48.000 26 Sales $5.00 31 Bal eld 449.190 31 Anas 14.940 779.540 779540 Jun, 2009 Balbid 449,390 You are required to prepare 1). Adjusted cash book (5 marks) in). 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)