Question $2$

Kitty Wilkinson records her weekly cash flow for her business. The below are her records for the month of May $2023$

May $1$

Opening balances, overdrawn bank balance at the bank $$11,890,$ Cash balance $$2,300$

May $2$ Cash sales amounted to $$25,690.$

May $5$ Deposited cash in the bank, $$25,000$

May $6$ Paid Purchases by cheque $$10,470$

May $7,$ Cashier with draws $$2,000$ cash from bank for business use.

May $8$ Owner withdraws cash from bank to pay his house rent $$8,000.$

May $10$ Debtor $-$ M Kennedy paid with a cheque for $$2,000$ after he deducted a $$500$ cash discount to which he was entitled.

May $15$ Cash sales immediately deposited to the bank account $$31,110.$

May $16$ Payment to creditor$-$C Barry by cheque $$9,900$ in full settlement of amounts owing to him of $$10,500.$

May $19$ Purchases paid by the business' debit card $$12,000.$

May $23$ Cash sales $$6,840$

May $25,$ Wages paid in cash $$5,400.$

May $29,$ Paid creditor $-$ B Goode $$3,400$ by cheque

May $30,$ Received $$3,000,$ cheque from J Jacobs settling amounts owed

Required:

a$)$ Record the above transactions in the Three Column Cash Book of Kitty Wilkinson. Balance the cash book and bring down the balances.

On June $3,2023,$ Kitty Wilkinson received a bank statement from the bank for the month of May which showed an overdrawn balance of $$700,$ it was also noted that there was a debit balance of $$3,450$ in the cash book. This did not agree with the balance as per her bank statement; therefore, you as the part time accountant was asked to assist with the preparation of Kitty's bank reconciliation statement. After careful examination, the following discrepancies and omissions were discovered: