6. Francesca Clothings Cash Book (bank column) had a debit balance of RM1,030 on 30 June 2018. This amount did not agree with the bank statement of the same date. The Cash Book was checked against the bank statement and the following differences were found:

• Cheques totaling RM1,250 issued to suppliers had not been presented to the bank for payment.
• An amount of RM2,900 paid into the bank did not appear on the bank statement.
• Cash sales deposited into the bank amounting to RM780 had been recorded as RM870 in the Cash Book.
• The bank had received RM300 by credit transfer (bank giro) from Kelly, a customer.
• A cheque for RM830 received from Jasmine had been paid into the bank but it had now been returned with the remarks Non-sufficient Fund (NSF). No entry has been made in the books to reflect this returned cheque.
• Bank charges of RM240 charged by the bank had not been recorded in the Cash Book.
• The bank had in error credited the bank statement with a cheque amounting to RM1,400. This cheque belongs to another business, France Clothings.
• The cashbook had wrongly recorded a cheque paid out for RM600 as a cheque for RM1,600.

Required:

1. Update the cash book of Francesca Clothings to show the updated balance as at 30 June 2018.

2. Prepare a bank reconciliation statement for Francesca Clothings as at 30 June 2018.

Discuss briefly FOUR (4) reasons for a cheque to be returned by the bank