1. The following is a summary from the cash book of the Hozy Company Limited for October 20X8.

Opening balance b/f 1,407 Payments 15,520

Receipts 15,073 Closing balance c/f 960

16,480 16,480

On investigation you discover that:

1) Bank charges of 35 shown on the bank statement have not been entered in the cash book.

2) A cheque drawn for 47 has been entered in error as a receipt.

3) A cheque for 18 has been returned by the bank marked 'refer to drawer', but it has not been written back in the cash book.

4) An error of transposition has occurred in the opening balance in that the cash book should have been carried down at 1,470.

5) Three cheques paid to suppliers for 214, 370 and 30 have not yet been presented to the bank.

6) The last page of the paying-in book shows a deposit of 1,542 which has not yet been credited to the account by the bank.

7) The bank has debited a cheque for 72 in error to the company's account.

8) The bank statement shows an overdrawn balance of 124.

REQUIRED:

a) Show what adjustments you would make in the cash book;

b) Prepare a bank reconciliation statement as at 31 October 20X8.