Question 2 The following is a summary of cash book as presented by Champion Lid for the month of August 2020: GHE GH Receipts 14,690 Balance b/d 7,610 Balance c/d 5.540 Payments 12.620 20.230 20.230 Balance b/d 5.540 All receipts are banked and all payments are made by cheque. On investigation you discovered the following: i. Bank charges of GHC1,360 entered on the bank statement have not been entered in the cash book ii. Cheques dra amounting to GHC2,670 had not been presented to the bank for payment iii. Cheques received totalling GHC7,620 had been entered in the cash book and paid into the bank, but had not been credited by the bank until 3 November iv. A cheque for GHC220 for sundries had been entered in the cash book as a receipt instead of as a payment A cheque received from Betty for GHC800 had been returned by the bank and marked "No funds available. No adjustment has been made in the cash book. vi. A standing order for a business rates instalment of GHC1,500 on 30 August had not been entered in the cash book. vii. All dividends received are credited directly to the bank account. During October amounts totalling GHC620 were credited by the bank but no entries were made in the cash book. viii. A cheque drawn for GHC660 for stationery had been incorrectly entered in the cash book as GHC600. The balance brought forward in the cash book should have been GHC7,110, not GHC7,610. V. ix. Required: a) Show the adjustments required in the cash book. (5 marks) b) Prepare the bank reconciliation statement as at 31" August 2020. (5 marks) c) State and explain any four causes of discrepancies in the bank statement balance and the cashbook balance. (6 marks) (Total 16 marks)