1. The balance shown on the bank statement will differ from the cash book balance. This difference is due to certain reasons. List and explain clearly three (3) of the reasons.

1. Thomas Nelson's bank account for the month of July 2009 was as follows: BANK ACCOUNT

Ju ly		Balance bid	$ 2,900	July	7	Jasper Lid.	$ 2000
J uly	2	D.Campbell	3,700	J uly	11	BestGames	1 300
.J uly	12	K. Roberts	6,250	July	14	D. Brown	1 ,790
J uly	14	N . Reynolds	4,350	July	17	T.Powell	470
July	26	F.Lambert	750	J uly	22	Jasper Ltd.	1 ,920
July	26	S. Taylor	1,2I1	J uly	24	C. Nelson	990
				July	26	S. Lawrence	890
				Jul y	28	BestGames	1 ,260
				July	29	V. Lewis	750
				July	31	Balance c/d	7.791

J n early August 2009 Thomas Nelson recei ved the fol lowing statement from his bank

J	Balance b/d			2,900
3	D. Campbell		3700	6,600
7	Jasper Ltd.	2000		4,600
14	Best Games	1,300		3,300
14	D. Brown	1,790		1,510
14	K. Roberts		6,250	7,760
15	Standing Order	390		7,370
18	Credit Transfer		480	7,850
22	N. Rey nolds		4,350	12,200
22	T. Powell	470		U ,730
22	C. Nelson	990		10,740
24	Direct Debit	6,250		4,490
25	Jasper Ltd.	1,920		2,570
28	Bank Charges	75		2,495
29	Credit Tra nsfer		480	2,975
29	Standing Order	740		2,235

Required

I . Prepare an updated cash book. 2. Prepare Thomas Nelson 's bank reconciliation as a t the end of July 2009