Majority of the candidates attempted this question and performed well in the (b) and fairly well in (a i, ii). The expected answer in a i and a ii include:
(a i). Bank Statement:
- It is a Statement prepared by a bank for its customers
- It shows an opening and closing balance
- Transactions that increase the balance are credited while transactions that decrease the balance are debited.
(a ii). Bank Reconciliation Statement:
- It is prepared by a customer of a bank to reconcile the
disagreement of the cash book and bank statement balance
- It is started with cash book balance or bank statement balance
- Unpresented cheque, uncredited cheques and other errors in both
cash book and bank statement are recorded in it.
- The closing balance in this statement should agree with either the
cash book balance or bank statement balance.