7.9 Pierre Breton’s cash book shows a debit balance of £1,234 at 31 December 20X6. The bank statement as at that date shows a balance of £182.

• In checking the cash book against the statement, Breton’s accountant finds the following:

1. Euro cheques drawn by Breton when working in France had been charged to the account by the bank, in the amount of £567. No entry had been made in the cash book.

2. Bank charges of £18 had not been entered into the cash book.

3. A payment to a French supplier, in euros, had been correctly entered in the cash book in pounds sterling, but the bank’s commission of £127 had been omitted.

4. Cheques drawn during December, amounting to £890, had not yet been presented and cleared by the bank.

5. A cheque for £1,230, payable to Breton, had been sent to the bank by post, but had not been cleared by 31 December.

Required:

(a) Show the adjustments needed to the cash book.

(b) Prepare the bank reconciliation as at 31 December 20X6.