QUESTION 2 (25 MARKS) The following is a summary of a cash book as presented by George Ltd for the month of October GHS 1469 Receipts Balance b/d GHS 554 Balance c/d Payments 761 2023 1262 2023 All receipts are banked and all payments On investigation, you discover: i. #1. iv. V. vii. viii. ix. are made by cheque. Bank charges of GHS136 entered on the bank statement have not been entered in the cash book. Cheques drawn amounting to GHS267 had not been presented to the bank for payment. Cheques received totalling GHS762 had been entered in the cash book and paid into the bank, but had not been credited by the bank until 3 November. A cheque for GHS22 for sundries had been entered in the cash book as a receipt instead of as a payment. A cheque received from K Jones for GHS80 had been returned by the bank and marked 'No funds available. No adjustment has been made in the cash book. A standing order for a business rates instalment of GHS150 on 30 October had not been entered in the cash book All dividends received are credited directly to the bank account. During October, amounts totalling GHS62 were credited by the bank but no entries were made in the cash book. A cheque drawn for GHS66 for stationery had been incorrectly entered in the cash book as GHS 60. The balance brought forward in the cash book should have been GHS711, not GHS761. Required: a. Update the cash book and prepare a bank reconciliation statement as at 31 October. b. Briefly explain why it is necessary to prepare bank reconciliation statements at accounting year ends. QUESTION 3 (25 MARKS) Describe the accounting cycle. Your description must be logical and include a discussion of the transactions, documents, and books involved at each stage of the cycle.