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The Bank Statement and Cash Book (bank columns only) for Aragorn Elfin for the month of October 2020 are as follows. Bank statement Debit Credit

The Bank Statement and Cash Book (bank columns only) for Aragorn Elfin for the month of October 2020 are as follows.

Bank statement
Debit Credit Balance
2020 $ $ $
October 01 Balance 900
October 03 T. Simeon 150 1,050
October 07 Cash sales 850 1,900
October 13 Vehicle loan 1,700 200
October 15 Standing order 1,000 (800) O/D
October 21 Debit transfer 825 (1,625) O/D
October 29 Rent 2,300 (3,925) O/D
October 29 Credit transfer 4,000 75
October 30 Bank chargers 400 (325) O/D
Cashbook (bank columns only)
2020 $ 2020 $
October 01 Balance b/f 900 October 10 Light & Power Company 180
October 03 T. Simeon 150 October 13 Vehicle loan 1,700
October 07 Cash sales 850 October 29 Rent 2,300
October 24 D. Elwin 500
October 31 Balance c/d 1,780
4,180 4,180
Nov 1 Balance 1,780

Required

a) Prepare the updated Cashbook to show the adjusted balance. (3.5 marks)

b) Starting with the updated cash book balance, draw up a bank reconciliation statement for Aragorn Elfin for the month of October 2020. (3 marks)

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