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

a) Prepare the updated Cash book 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)

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 S 150 850 2020 Oct 01 Balance Oct 03 T. Simeon Oct 07 Cash sales deposit Oct 13 Vehicle loan Oct 15 Standing order Oct 21 Debit transfer Oct 29 Rent Oct 29 Credit transfer Oct 30 Bank charges 1.700 1.000 825 2,300 Balance $ 900 1,050 1,900 200 (800) (1,625) (3,925) 75 (325) O/D O/D O/D 4,000 400 O/D 2020 Oct 01 Balance b/f Oct 03 T. Simeon Oct 07 Cash sales Oct 24 D. Elwin Oct 31 Balance c/d Cash Book (bank columns only) $ 2020 900 Oct 10 Light & Power Company 150 Oct 13 Vehicle loan 850 Oct 29 Rent 500 1.780 4,180 Nov1 Balance $ 180 1,700 2,300 4.180 1,780 a) Prepare the updated Cash book 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