Cass Hawin’s bookkeeper had not balanced the cash book on 31 March year 7. It received a bank statement, dated 31 March year 7, which showed an overdraft of £2,000. Further investigation revealed the following:

a Unpresented cheques amounted to £1,500 b On 31 March Cass Hawin had deposited £3,600 cash into the bank, but this was not shown on the bank statement c The bank statement showed interest received of £200, which had not yet been recorded in the cash book d The bank charges for December amounted to £150 Required:

i Show the necessary adjustments to the bank statement in a bank reconciliation statement; and ii Show what the cash book balance should be before making any necessary adjustments.