Rahat is a trader. The following transactions took place in March 2021. March 3 Cash sales, $580, were paid directly into Rahat's business bank account 6 Paid insurance, $360, by direct debit 9 Paid $196 to GH Limited by telephone transfer, having deducted 2% cash discount from the amount due 13 Paid $75 cash for stationery 17 Cash sales, $140 27 Sold old office equipment to Burgess, who paid $50 by cheque in full settlement 30 Paid $340 to Colin by cheque in full settlement of a debt of $350 REQUIRED

1. (a)Complete Rahat's cash book on the page opposite. Balance the cash book and bring down the balances on 1 April 2021.[11]
2. (b)Complete the following table by placing a tick (✔) in the correct column to indicate whether each item would be used to update the cash book or would appear in the bank reconciliation statement. Update the Bank cash book reconciliation statement Cheque from Burgess dishonoured Cheque to Colin unpresented Overdraft interest Standing order paid for rates[4]
3. (c)Advise Rahat whether she should apply for the bank loan. Justify your answer by providing two advantages and two disadvantages.[5]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.