Mohan is a trader. On 24 April 2011 he had a bank overdraft of $150. The following transactions took place during the week ended 30 April 2011. April 25 Withdrew $200, by cheque, for personal use. April 26 Paid by cheque the balances on the accounts owed to: Kerai, $400, less 3% cash discount Susan, $750, less 4% cash discount. April 27 Cash sales, $630, paid into the bank. April 28 Received a cheque from Loula for the balance of her account, $2000, less 4% cash discount. April 30 Cashed cheque to pay wages, $430. REQUIRED

1. (a)Prepare the bank columns of Mohan’s cash book for the week ended 30 April 2011. Show the balance brought down on 1 May 2011.[8]
2. (b)Starting with the closing balance from (a) update the bank columns in the cash book. Bring down the amended balance. On 1 May 2011 Mohan received the following bank statement: Bank Statement Dr Cr Balance $ $ $ April 24 Balance 150 Dr April 25 Cheque 200 350 Dr April 28 Cheque 388 738 Dr April 29 Cheque 720 1 458 Dr April 29 Credit Transfer (Dividend) 24 1 434 Dr April 29 Credit 630 804 Dr[2]
3. (c)Prepare the bank reconciliation statement at 1 May 2011.[7]
4. (d)Place a tick (✔) in the appropriate box to show whether each of the following is an account, a book of prime entry or both an account and a book of prime entry. The first item has been completed as an example. Inventory Purchases journal Cash book Provision for depreciation[3]