QUESTION 3 (a) On 31 December 2015, the bank column of C. Tech's cash book showed a debit balance of $1500. The monthly bank statement written up to 31 December 2015 showed a credit balance of $2950. On checking the cash book with the bank statement, it was discovered that the following transactions had not been entered in the cash book: (i) Dividends of $240 had been paid directly to the bank (ii) A credit transfer, VAT refund of $260 had been collected by the bank (iii) Bank charges $30 (iv) A direct debit of $70 for RAK subscriptions had been paid by the bank (v) C. Tech's deposit account balance of $1400 was transferred into his bank current account (vi) Standing order (Tech's loan repayment) \$200 (vii) Two cheques drawn in favor of Kod \$250 and Hadok \$290 had been entered in the cash book but had not been presented for payment. (viii) Cash and cheques amounting to $690 had been paid into the bank on 31 December 2015 but were not credited by the bank until 2 January 2016. You are required to: (i) Bring the cash book up to date. [8] (ii) Prepare bank reconciliation statement as at 31 December 2015. (b) Explain any five reasons why balances of cash book and bank statement may not be equal. [10]