8550 Question 2 The following is a summary of cash book as presented by Chunpion Ltch for the month of August 2020: GHS GH Receipes 14,690 Balance bd 7,610 Balance eld 5.540 Payments 12620 20.230 202230 Balance b/d 5.540 All receipts are banked and will payments are made by cheque. On investigation you discovered the following 1. Bark charges of GHCI 360 entered on the bank statement have not been entered in the cash book 11 Cheques drawn amemting to GHC2,670 had not been presented to the bank for payment ili Cheques received totalting GH07.620 had been entered in the cash book and paid into the bank, but had not been credited by the bank until 3 November A cheque for GHC220 for sundries had been entered in the cash book as n receipt instead of as a payment A cheque received from Betty for GHC800 had been returned by the bank and marked No funds available No adjustment has been made in the cash book A standing order for a business rates instalment of CHC1.500 on 30 August had not been entered in the cash book All dividends received are credited directly to the bank account. During October amounts totalling GHC620 were credited by the bank but no entries were made in the cash book A cheque drawn for GHC660 for stationery had been incorrectly entered in the cash book as CH0600. The balance brought forward in the cash book should have been GHU7110, not GH07.610 vii viil Required: *) Show the adjustments required in the cash book. 15 marka) b) Prepare the bank reconciliation statement is at 31 August 2020 (5 marks) State and explain any four causes of discrepancies in the bank statement balance and the cashboak balance (6 marks) (Total 16 marks) aloesss 440 Fog/04