Kitty Wilkinson records her weekly cash flow for her business. The below are her records

for the month of May $2023$

May $1$ Opening balances, overdrawn bank balance at the bank $$11,890,$ Cash

balance $$2,300$

May $2$ Cash sales amounted to $$25,690.$

May $5$ Deposited cash in the bank, $$25,000$

May $6$ Paid Purchases by cheque $$10,470$

May $7$ Cashier with draws $$2,000$ cash from bank for business use.

May $8$ Owner withdraws cash from bank to pay his house rent $$8,000.$

May $10$ Debtor $$ M Kennedy paid with a cheque for $$2,000$ after he deducted a

$$500$ cash discount to which he was entitled.

May $15$ Cash sales immediately deposited to the bank account $$31,110.$

May $16$ Payment to creditor $-$C Barry by cheque $$9,900$ in full settlement of

amounts owing to him of $$10,500.$

May $19$ Purchases paid by the business$$ debit card $$12,000.$

May $23$ Cash sales $$6,840$

May $25$ Wages paid in cash $$5,400.$

May $29$ Paid creditor $$ B Goode $$3,400$ by cheque

May $30$ Received $$3,000,$ cheque from J Jacobs settling amounts owed

Required:

a$)$ Record the above transactions in the Three Column Cash Book of Kitty

Wilkinson. Balance the cash book and bring down the balances.

On June $3,2023,$ Kitty Wilkinson received a bank statement from the bank for the month

of May which showed an overdrawn balance of $$700,$ it was also noted that there was a

debit balance of $$3,450$ in the cash book. This did not agree with the balance as per her

bank statement; therefore, you as the part time accountant was asked to assist with the

preparation of Kitty$$s bank reconciliation statement. After careful examination, the

following discrepancies and omissions were discovered:

$5$

i$.$ Bank charges amounted to $$1,500$ were not recorded in the cash book

ii$.$ Cheque received from M Kennedy on May $10$ had been dishonoured.

iii. Amount deposited on May $30$ from J Jacobs have not been included in the

bank statement.

iv$.$ Standing orders for the utility bills of $$2,800$ had been paid by the bank, this

has not yet been recorded in the cash book,

v$.$ Three of Kitty$$s customers chose to deposit directly to her bank account, these

amounted to $$1,750.$

vi$.$ The cheque which was drawn in the amount of $$3,400$ for B Goode on May $29$

was not among the cheques returned with the bank statement. There was also

no record of it on the bank statement.

Required:

b$)$ Update Kitty Wilkinson$$s cash book, starting with the closing balance in her cash

book from the required above.

c$)$ Prepare Kitty Wilkinson$$s bank reconciliation statement for the month of May

$2023$ using appropriate headings.