The cash book of Mr. Mbindawina shows K836,400 as bank balance as at 31 December 2019....

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The cash book of Mr. Mbindawina shows K836,400 as bank balance as at 31 December 2019. However, you discover that it does not agree with the balance as per bank statement. On scrutiny, you find the following discrepancies: 1. On 15th December 2019 the payment side of the Cash Book was undercast by K10,000 2. A cheque for K131,000 2019 was not taken in the bank column. 3. One deposit of K150,000 was recorded in the Cash Book as if there is no bank column therein 4. on 17th December 2019 the debit balance of K15,260 as on the previous day, was brought forward as credit balance 5. of the total cheques amounting to K11,514 drawn in the last week of December 2019, cheques aggregating K7,815 were encashed in December. 6. Dividends of K25,000 collected by the Bank and subscription of K1,000 paid by it were not recorded in the Cash Book. 7. One out-going cheque of K350,000 was recorded twice in the Cash Book. Required: a) Show the adjusting entries in the cash book b) Prepare bank reconciliation (10 marks) (5 marks) c) Your workmate from the human resource department does appreciate why you prepare bank reconciliation statements. You are required to explain to your workmate the importance of reconciling the bank account and in your response, explain the nature of differences that may arise. The cash book of Mr. Mbindawina shows K836,400 as bank balance as at 31 December 2019. However, you discover that it does not agree with the balance as per bank statement. On scrutiny, you find the following discrepancies: 1. On 15th December 2019 the payment side of the Cash Book was undercast by K10,000 2. A cheque for K131,000 2019 was not taken in the bank column. 3. One deposit of K150,000 was recorded in the Cash Book as if there is no bank column therein 4. on 17th December 2019 the debit balance of K15,260 as on the previous day, was brought forward as credit balance 5. of the total cheques amounting to K11,514 drawn in the last week of December 2019, cheques aggregating K7,815 were encashed in December. 6. Dividends of K25,000 collected by the Bank and subscription of K1,000 paid by it were not recorded in the Cash Book. 7. One out-going cheque of K350,000 was recorded twice in the Cash Book. Required: a) Show the adjusting entries in the cash book b) Prepare bank reconciliation (10 marks) (5 marks) c) Your workmate from the human resource department does appreciate why you prepare bank reconciliation statements. You are required to explain to your workmate the importance of reconciling the bank account and in your response, explain the nature of differences that may arise.