Exercise 5.6 At the close of business on 29 February Year 8 , the balance of cash at bank as shown in the Cash Book of Joseph Stalin, a sole trader, did not agree with his bank statement. On comparing the two, Stalin discovered that the following matters accounted for the difference: (1) During February the bank had allowed Stalin bank interest amounting to $27. This had not yet appeared in the Cash Book. (2) The following cheques, issued by Stalin during February, had not yet been presented for payment: $38,$42,$17 (3) During February the bank had paid, under a banker's standing order, rent of Stalin' shop amounting to $65, which did not appear in his Cash Book. (4) On 29 February Stalin paid into his bank cash amounting to $74. The item had been entered in Stalin' Cash Book but had not yet appeared on his bank statement. (5) The Cash Book balance at 29 February Year 8 showed cash at bank $634. Required: (i) Draw up the bank columns of the Cash Book of Stalin for February Year 8, commencing with the figure of $634 given in (5) above. Enter the omitted items, and carry down the balance. (ii) Prepare the Reconciliation Statement at 29 February Year 8. This should commence with the final bank balance as in (i) and end with the balance as shown on the bank statement