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The following items appeared in the Bank reconciliation statement of Ndi-Ndu Stores at their year-end, 30 June 2016: You are required to answer the following:
The following items appeared in the Bank reconciliation statement of Ndi-Ndu Stores at their year-end, 30 June 2016: You are required to answer the following: (a) Prepare a Bank reconciliation statement as at 30 June 2016. (b) One of the listed cheques not presented to the bank has been treated incorrectly. Identify the cheque. Give a reason for your choice and explain the correct course of action. (c) Does Ndi-Ndu Stores have a favourable bank balance or an overdraft according to the bank's records? Give the amount and a reason for your answer. (d) A cheque received by Ndi-Ndu Stores on 25 June 2016 but dated 14 August 2016, does not appear in the Bank reconciliation statement. Give an explanation. (2) (e) Explain how cheque no. 945 should be treated when preparing the financial statements. (2) (f) What action would Ndi-Ndu Stores take if a cheque issued by another business, appears on their Bank statement? (g) Explain why cheque no. 945 is not treated in the same way as cheque no. 946 when preparing the financial statements. (2) (h) What would the procedure be if cheque no. 891 does not appear on the Bank statement for July 2016 ? Q MTEC COLLEOE - NOVEMBER AN1 PAGE FINANCIAL ACCOUNTING 1 (i) Give two possible reasons for a dishonoured cheque received by Ndi-Ndu Stores. (2) (j) Explain why the stop orders of a business do not appear in their Bank reconciliation statement. (1)
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