Q4. Read the following and answer the questions below. On 31 December 20X8 the bank column of C Tench's cash book showed a debit balance of K 1,500. The monthly bank statement written up to 31 December 20X8 showed a credit balance of K 2,950. On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book: a) Dividends of K 240 had been paid directly to the bank. b) A credit transfer - Customs and Excise VAT refund of K 260 - had been collected by the bank. c) Bank charges K 30. d) A direct debit of K 70 for the RAC subscription had been paid by the bank. e) A standing order of K 200 for C Tench's loan repayment had been paid by the bank. 1)C Tench's deposit account balance of K 1,400 was transferred into his bank current account. A further check revealed the following items: a) Two cheques drawn in favour of T Cod K 250 and F Haddock K 290 had been entered in the cash book but had not been presented for payment b) Cash and cheques amounting to K 690 had been paid into the bank on 31 December 20X8 but were not credited by the bank until 2 January 20X9. Required: Starting with the debit balance of 1,500, bring the cash book (bank columns) up to date and then balance the bank account. Then prepare a bank reconciliation statement as at 31 December 20X8. (25 marks)