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On 15 October 2019, Mr.Ladzagla received his bank statement for the month ended 30 September 2019. The statement showed a balance of GH208,700 (overdraft) as

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On 15 October 2019, Mr.Ladzagla received his bank statement for the month ended 30 September 2019. The statement showed a balance of GH208,700 (overdraft) as at 30 September while cash book showed a balance of GH262,995 (credit) as at that date. On examination of the cash book and the bank statement, the following were discovered: i. Mr Ladzagla exceeded his overdraft limit during the month of September. The bank had therefore charged him a penalty of GH1,250. This has not been effected in the cash book ii. A sum of GH6,250 had been credited to Ladzagla's bank account in error by the bank. Bank charges of GH 1,005 had not been recorded in the cash book. iv. A cheque for GH6,150 had been returned by the bank as dishonoured. Due to the dishonoured cheque, the bank charged Ladzagla GH75. Both the dishonoured cheque and the fee charged have not been effected in the cash book. iii. V. vii. X Cash receipts of GH18,700 were posted as cash payment of GH23,650 in the cash book. vi. On 21 September, Mr Ladzagla lodged cash of GH3,250 to his personal bank account. This was lodged into the business bank account in error by the bank. Standing order and direct debits of GH5,575 had not been posted to the cash book. viii. Payment of GH10,850 received from customers have been lodged in the bank account but is yet to be posted to the cash book. ix. Lodgements of GH25,600 to bank on 30 September 2019 had not been credited by the bank. The following cheques drawn on the bank accounts had not been presented to the bank for payment as at 30 September 2019. Cheque Number Date cheque was written GH No. 3528 11 September 2019 4,200 No. 3535 28 September 2019 8,700 No. 3557 30 September 2019 18,350 Required: a. Prepare the adjusted cash book for the month of September 2019. b. Prepare a statement on 30 September 2019 reconciling the adjusted cash book with the bank statement balance. C. State TWO (2) reasons for preparing bank reconciliation on a regular basis

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