1. On 31^st December 2020 the books of Maembe Tamu showed a debit balance of Kes 12,000 on the cash book while the bank statement on that date showed an overdraft of Kes 2,000. On investigation the following discrepancies were detected;

1. A cheque from a debtor of Kes 10,000 was returned marked R/D a record of which had not been effected in the cash book.
2. Cheques amounting to Kes 5,000 were not presented by creditors to the bank for payment.
3. The bank had paid standing orders amounting to Kes 8000 on behalf of Maembe Tamu.
4. The bank charges for the month of December amounted to Kes 500.
5. There were direct deposits by debtors amounting to Kes 300.
6. Maembe Tamu had banked cheques amounting to Kes 800 and these were not yet credited by the bank

Required:

1. Prepare an updated cash book (3 marks)
2. Prepare an updated bank reconciliation statement (2 marks)