2 The following is the Cash Book (Bank columns only) for Martin Cooper for June 2020. June 1 Balance b/d 8.000 June 6 Rent 1200 June 9 Lodgement 1 200 June 9 Electricity 600 June 10 Gary Grant 1000 June 12 Bob Parker 1600 June 14 Bryan Brown 3040 June 15 Frank Whyte 800 June 22 Paul Carter 3 680 June 24 Tom Green 3360 June 30 Balance c/d 9.360 16.920 16 920 The following Bank Statement relates to the same period under consideration 2020 Payments S Receipts S Balance June 1 Balance b/d 8 000 4 Standing order 60 7940 8 Rent 1200 6740 12 Electricity 600 6140 13 Lodgement 1200 7340 15 Gary Grant 1.000 8 3401 18 Joan Thomas 11401 9480 21 Dishonoured cheque 760 8 720 24 Bank charges 120 8 600 26 Direct transfer 400 9 000 30 Bob Parker 1600 7400 Required: A. An updated Cash Book for the month of June 2020. (7 marks) B. State THREE (3) reasons that account for the differences in the balances between the Cash Book and Bank Reconciliation Statement. (3 marks) C. A Bank Reconciliation Statement as at June 30, 2020. (10 marks) (Total 20 marks) Question 3 From the following list of balances, prepare a trial balance as at 31 December 2020 for Arusha James. Plant and Machinery Motor Vehicles Premises 21450 26 000 80 000 Wages 42 840 Purchases 119 856 Sales 179 744 Rent Received 3.360 Telephone, printing and stationery 3.600 Accounts Payable 27 200 30 440 Accounts Receivable Bank Overdraft Capital Drawings General Expenses 2216 ? 10 680 3 584 Lighting and heating Motor Expenses Inventory (I January 2020) Discount Received Returns Inwards Interest Received Returns outwards Commission Received Cash in hand Taxes Expense Inventory (31 December 2020) 2960 2360 9.000 7.000 8.500 20 000 3.200 5.300 12.000 6.000 15 000 Table 2. Required: A. Prepare a Trial Balance as at 31 December 2020 for Arusha James. (17 marks) B. Explain THREE (3) purposes of the Trial Balance. (3 marks) (Total 20 marks)