On September 1st, 2007, Mr. Afnan organized a business called Tony’s Rentals for the purchase of operating an equipment rental yard.Mr. Afnan’s new
business was able to begin operations immediately by purchasing the assets and taking over the location of Rent-IT, an equipment rental company that was
going out of business.
The company closes its accounts and prepares financial statements at the end of each month.
The company’s most recent bank statement reports the following information.
(Ignoring above information)
Balance as per cash book 5877.
Cheques is sued but not presented for payment 2013
Cheques deposited but not cleared up to 31-10-07 1419
Bankers had wrongly debited the firm's account with Rs. 225 which was not rectified until31st October
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