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Question 3 The following details concern the cash book (bank columns) of Jessica Kelly's business for October 2021: 2021 October 1 Balance b/d: 55,660 (overdraft)

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Question 3 The following details concern the cash book (bank columns) of Jessica Kelly's business for October 2021: 2021 October 1 Balance b/d: 55,660 (overdraft) October 6 Jessica Kelly settled the account of S1,900 with a supplier, Dinnie Chung, by cheque. A cash discount of 5% was received. October 8 Paid wages of $2,300 by cheque. October 15 Paid $2,520 by cheque to settle the account of Minnie Man, a supplier. October 22 Banked cash sale proceeds of $46,173. October 29 Withdrew $12.000 cash from the bank for business use. Required: (a) Write up the cash book for the month of October 2021. (3.5 marks) The bank statement showed a credit balance of $19,538 as at 31 October 2021. Also, the following information was found: i. A standing order made on 15 October 2010 to pay insurance of $3,500 had not been entered in the cash book. 1. A trade debtor, Norman Ko, paid $5,000 by credit transfer. This had not been recorded in the cash book. i. An autopay of $2,000 for rent appeared on the bank statement but had not been recorded in the cash book. iv. A cheque payment of $1,440 to a trade creditor, Raymond Tam, had been entered in the cash book as $4,140. v. The bank had not credited a cheque for $4,466 received from a trade creditor. This had been debited in the cash book and deposited into the bank on 30 October 2010. vi. Bank charges of $99 had not been recorded in the cash book. vii. The following cheques had not been presented to the bank: Cheque No. Payee Amount 113162 Susan Au $1,206 113163 Besa Cheung $2,110 113164 Cathy Tou $499 viii. A cheque for $3,800 received from Lisa Mok was dishonoured and returned by the bank. This had not been recorded in the books. Required: b) Update the cash book of Jessica Kelly, showing the adjusted balance as at 31 October 2021. (4 marks) c) Prepare a bank reconciliation statement as at that date, commencing with the adjusted cash book balance. (2.5 marks)

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