According to the cash book of Redstone Enterprise Ltd the company has an overdrawn balance of $$7600$ on June $302004,$ but this is not borne out by the bank statement of the same date which had a balance of $$6530$ overdrawn. An investigation into the difference yields the following information.

$(1)$ A standing order for a charitable subscription of $$800$ had been paid by the

bank on $29$ June $2004$ but no entry had been made in the cash book.

$(2)$ A cheque paid for advertising on $10$ June for $$3580$ had been entered in the

cash book as $$5380$

$(3)$ Cheques for $$17370$ sent to accounts payable on $30$ June $2004$ were not

paid by the bank until $6$ July $2004.$

$(4)$ Cheques received from customers amounting to $$12800$ were paid into the

bank on $30$ June $2004$ but were not credited by the bank until $1$ July $2004.$

$(5)$ On $20$ June $2004$ a cheque for $$2100$ was debited to the account of Redstone

Enterprise Ltd$,$ in error by the bank.

$(6)$ Bank charges of $$2400$ was not recorded in the cash book.

REQUIRED:

a$)$ Prepare the revised cash record $($cash book$)$ as at $30$th June $2004.(10$ marks$)$

b$)$ Prepare the bank reconciliation statement as at $30$th June $2004.(6$ marks$)$

c$)$ Explain six $(6)$ reasons why the bank statement balance may differ from the cash book balance. Which side of the adjusted cash book would you expect these adjustments to be posted. $(6$ marks$)$

d$)$ Explain six $(6)$ purposes of the bank reconciliation process. $(6$ marks$)$