Depreciation and ii. iii. Asset revaluation and asset retirem QUESTION TWO Mbugua's cash book showed a debit balance of Ksh 117,009.70 on 31st March 2009. His bank statement showed a credit balance of Ksh 38,257.30 on the same date. A careful examination of the two records revealed that the difference was due to the following: 1. Bank charges amounting to Ksh 1,711.50 2. The bank had paid Ksh 5,339.50 to Mbugua's insurance company as per standing order. 3. David Odhiambo who was Mbugua's tenant had paid rent Ksh 14,500 direct into Mbugua's bank account. 4. Cheques for Ksh 43,275 deposited by Mbugua on 29th March was returned unpaid but no entry had been made in the cash book to record the return. 5. Cheques totaling Ksh 149,088.40 deposited by Mbugua on by the bank on 2nd April. doing onl mus 30th March were credited 6. Cheques totaling Ksh 134,402 issued by Mbugua to his creditors did not appear on the bank statement. One of these cheques of Ksh 6,420 was dated 3rd A cheque of Ksh 8,240 issued by Glen another customer at the bank was wrongly debited by the bank in Mbugua's bank account. September 2008. The cashier, in totaling the cash book pages, overstated the debit balance of the cash book by Ksh 20,000 red: 19228 021, not bozu 20 Adjusted cash book balance. (9 Ma bank reconciliation statement as at 31st March 2009. (7 M: ate the actions, if any, Mbugua would take on the reconciling items. (4 M