Question 3 - Bank Reconciliation (15 marks) Jane Pandu received her bank statement for the month ended 31 December 2015 on January 2016. The bank statement showed a balance of N$11 788 (overdraft) as at 31 December 2015 while the cash book (bank account) showed a negative balance of N$ 20 770 (credit) as at the date. On examination of the cash book and the bank statement the following were discovered 1) A dishonored cheque of N$ 770 had been recorded as cash receipts, in error, in the cash book (bank account: 2) Bank charges of N$33 had not been recorded in the cash book (bank account: 3) Pendukeni has an approved overdraft level of N$10,000 from her bank. The bank statement contains a penalty of N$100 as Pendukeni exceeded the approved overdraft level. This has not been recorded in the cash book (bank account 4) A cheque of N$50 to replenish the petty cash bax, was recorded in the bank account but omitted from the cash book (bank account); 5) Cash receipts of N$ 2 350 were posted as cash payments of N$ 3 700 in the cash book (bank account); 6) On 17th December Pendukeni deposited cash of N$305 to her personal bank account. This was lodged to the business bank account in error by the bank 7) Standing orders of N$385 had not been posted to the cash book (bank account) 8) Receivables of N$2 175 were deposited directly to the business bank account. No record had been made of this in the cash book (bank account: 9) Deposit of N$ 2 095, deposited to the bank account on 31 December 2015, had not been credited by the bank 10) The following cheques, drawn on the bank account, had not been presented to the bank for payment as at 31 December 2015 Cheque Number Date Cheque was written No: 1425 24 June 2015 463 NS No: 2651 513 No: 3001 11 November 2015 28 December 2015 2620 Page 9 of 13 No: 3010 31 December 2015 1 060 You are required to: a) Prepare the adjusted cash book for the month of December 2015 (10 Marks) b) Prepare a statement on 31 December 2015, reconciling the adjusted cash book (bank account with the bank statement balance