Observation

Majority of the candidates attempted this question and performed well.  However, few candidates could not answer 1(a).    

The expected answers to 1(a) include:

1.       (a)      (i)      Bank Statement -  This is a document prepared by a bank and issued to
its customers.

It shows the following
-        Date;
-        Particulars/details;
-        Debit;
-        Credit;
-        Balance.

(ii)      Bank Reconciliation Statement

-        This is a statement prepared by a customer to reconcile or agree his bank balance in the cash book with that of the bank statement;
-        It shows the date at which the statement is prepared;
-        It starts with an opening balance which may either be a cash book balance or bank statement balance;
-        It discloses items that must have caused the discrepancies between the bank statement balance and cash book balance;
-        It discloses a closing balance which should agree with either the cash book balance or bank statement balance.