Omar maintains a three column cash book. On 1 March 20–4 he had a cash balance of $150 and a bank overdraft of $3,940.

Omar’s transactions for March 20–4 included the following:

March 8 Withdrew $1,500 from the bank for personal use
14 Cash sales paid directly into the bank, $2,310
18 Paid Mariam a cheque to settle her account of $320, less 2 1/2 % cash discount
21 Abdul paid his account of $110 by credit transfer
25 Zaffar paid $490 by cheque in full settlement of his account of $500
29 Cash sales, $2,462
30 Paid operating expenses in cash, $242
31 Paid all cash into bank except $200

Omar received his bank statement for March. He compared the two records and found the following differences:

1. Item appearing on the bank statement but not recorded in the cash book:
                                                          $
Bank charges ...........................     21

2. The bank had not recorded the transactions which took place on the following dates:

25 March
31 March

3. The bank had made an error and recorded the cash paid in on 14 March as $3,210.

a. Write up Omar’s cash book, including all relevant entries, for March 20–4. Balance the cash book and bring down the balances on 1 April 20–4.
b. Prepare a bank reconciliation statement at 31 March 20–4 showing the balance on the bank statement at that date.