Q2. On 31st May, 2021, your shop's cash book (bank column) showed an overdraft of Shs.3.229. The bank statement dated 31st May, 2021 showed an overdraft of Shs.1,351. A comparison of your cash book and the bank statement revealed the following discrepancies: i) ii) iii) iv) v) On 30th May, you had issued a cheque to the Nairobi Electricity Company for Shs.2,820. This was outstanding in the bank statement. A cheque for Shs.450 from one of your suppliers was banked on 31st May, 2021 and was outstanding in the bank statement. The bank statement recorded bank charges of Shs.37. A cheque for Shs.500 from John Njeru, a debtor, had been debited to your account in the bank statement. A cheque for Shs. 327 paid to APA Insurance was incorrectly shown as Shs.372 in your cash book. Required: Update your cash book as necessary and prepare a bank reconciliation statement as at 31st May, 2021.