The 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 h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910 i. A dishonoured cheque written by a client Jim Smith, $3,900 The entity doesn’t use special journals for record keeping. The entity prepares bank reconciliation statement at the end of each month. Required: a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019. b) Discuss why a bank reconciliation is still necessary even most of the transactions take place using electronic transfer of funds nowadays.
The 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
h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910
i. A dishonoured cheque written by a client Jim Smith, $3,900
The entity doesn’t use special journals for record keeping. The entity prepares
Required:
a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019.
b) Discuss why a bank reconciliation is still necessary even most of the transactions take place using electronic transfer of funds nowadays.
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