Question Three (15 marks) On 31 December 2012, the balance in the cash book of Lunsefya Hydro Power (LHP) Company was K68, 976. While the Bank statement had a balance of K74, 638.3 on the same date. The difference was as the result of the following transactions 1. The firms records indicate that a K5, 277,60 deposit dated December 30 and a K2, 860.80 deposit dated December 31did not appear on the bank Statement. 2. A bank Charge of K27 and K480 of the NSF (Non Sufficient Funds) Cheque received from a credit customer have not yet been adjusted in the Firms records 3. The following Cheques were issued but are not yet paid by the bank Chq no 235, K663 Cha no 237, K69.60 Cho no 240, K1, 429.20 Chq no 251. K3, 457.80 Chq no 252, K464.10 Chq no 254, K870.00 4. The bank collected money from a credit customer through electronic transfer on behalf of the firm K3, 090. This amount has not been entered in the firms Books 5. A Deposit of K4000 for ZESCO was wrongly credited to LHP by the bank 6. A cheque of K705 received from cash customer was wrongly recorded in the books as K507 7. A cheque of K360 paid for stationery has been cleared by the bank as 306 8. The bank statement showed a bank interest of K 120 which has not been recorded by the firm Required 1. Prepare a bank reconciliation statement for LHP at 31 December 2012 10marks) 2. Record general Journal entries for above items to update the Firms records as a result of the bank reconciliation.( 5 Marks)