Gina Howard makes all payments over £20 by cheque and pays all money received into the bank. On 1 May 20-5 the bank cash book showed a balance in the bank of £1,405.

During the month of May the following transactions took place:

3 May Drew a cheque for £450 (cheque number 20609), £105 was for petty cash the remainder was for personal use 4 May Paid D King’s account of £120 less 2^ per cent cash discount

(cheque number 20610)

5 May Banked cash from sales £205, a cheque of £86 fromWKelly in full settlement of his account of £92 and £27 in cash from P Ellis 8 May Paid electricity bill £328 (cheque number 20611)
12 May Banked cheque of £136 from J Dean in full settlement of her debt of £148, a cheque of £28 from H Khan and cash from sales £145 15 May Bought goods costing £299 (cheque number 20612)
18 May Paid telephone bill £384 (cheque number 20613)
19 May Banked cash from sales £150 25 May Paid M Dyson’s account of £480 less 2\ per cent cash discount (cheque number 20614)
27 May Bought a new photocopier costing £699 from Copywell (cheque number 20615)
28 May Paid Smart Motors £325 for servicing and repairs (cheque number 20616)
30 May Banked a cheque of £93 from J Kendall in full settlement of his debt of £98, cash from sales £205 and a cheque of £70 from C Dunn who purchased a photocopier which was no longer required On 2 June Gina Howard received her bank statement which contained the following information;
Date Details Debit Credit Balance 1 May Brought forward 1,405 4 May 20609 450 955 5 May Cash and cheques 318 1,273 10 May 20611 328 945 13 May Cash and cheques 309 1,254 18 May 20612 299 955 20 May Cash 150 1,105 22 May 20610 117 988 24 May Investment dividend 256 1,244 28 May 20614 468 776 29 May Insurance (direct debit)
191 585 30 May Michells (giro credit)
502 1,087 30 May 20616 325 762 You are required to:

(a) Write up and balance Gina Howard’s bank cash book for the month of May 20-5.

(b) Make the entries necessary to update the bank cash book after receiving the bank statement on 2 June 20-5.

(c) Prepare a bank reconciliation statement as at 31 May 20-5.