On 31 March 2025, Zac's bank statement showed an overdrawn balance of $1665, but the bank column of his cash book showed a debit balance of $825 on the same date. Upon investigation, he discovered that the following items appeared on his bank statement, but not in his cash book. March $ 20 Payment received by bank transfer from Zoe, a credit customer 310 23 Electricity charges paid by direct debit 936 25 Bank charges 58 29 A standing order for insurance had been deducted in error 1121 30 Interest received 45 The following items appeared in his cash book, but not on his bank statement. March $ 27 A cheque payable to AC Motors had not been presented 480 30 Cash and cheques deposited into the bank 1210 REQUIRED

1. (a)Update the bank columns of Zac's cash book. Balance the account and bring down the balance at 1 April 2025.[7]
2. (b)Prepare a bank reconciliation statement at 31 March 2025.[5]
3. (c)Advise Zac whether he should be completing a bank reconciliation statement every three months. Justify your answer by considering advantages and disadvantages of doing so.[5]
4. (d)State what is meant by the term 'dishonoured cheque'.[1]
5. (e)On 5 April, Zac was notified that a cheque paid into his business bank account during March had been dishonoured. The cheque for $128 was from Ali, a credit customer. REQUIRED Complete the following table to show the journal entry required to record the dishonoured cheque in Zac's accounts. A narrative is not required.[2]