The following information was provided by Magagi & Sons on the 31 st of July, 2020:

CASHBOOK

Dr N Cr N Jul-01 Balance b/d 70,000 Jul-08 Galadima 5,000 Jul-07 Gambo Usman 10,000 Jul-13 Obiora 1,000 Jul-22 Chika Ebo 4,000 Jul-26 Obasanjo 4,000 July 25 Chibuzo 3,000 Jul-29 Balance c/d 82,000 Jul-31 Kanayo Uche 3,000 Jul-31 Judith Oke 2,000

92,000 92,000

4

BANK STATEMENT

Date Particulars Ref Dr Cr Balance N N N 1-Jul Balance b/d 70,000 6-Jul Cheque 10,000 80,000 9-Jul Galadima 5,000 75,000 15-Jul Obiora 1,000 74,000 22-Jul Cheque 4,000 78,000 25-Jul Standing order (payment to BJ Ltd)

2,000 76,000 27-Jul Dividend from PZ Ltd 4,000 80,000 27-Jul COT 1000 79,000 31-Jul Bank charges 3,000 76,000 It was also discovered that a cheque from Chibuzo amounting to N3,000 was dishonored by the bank. Required: a. Update the cash book, and state the new balance as on 31 July 2018 (4 marks) b. Draw up a bank reconciliation statement as on 31 July 2018 (2 marks) c. Discuss three advantages of the statement which you prepared (2 marks) (Total