Kadima is a trader. He sells on credit only. During March 2025, the following transactions took place. March 4 Paid Lee, $196, by bank transfer in full settlement of an invoice for $200 6 Received payment by cheque, $291, from Sophiah who had deducted 3% cash discount 14 Paid motor expenses, $26, by cash 19 Received payment by bank transfer, $375, from Merve, a customer 22 Paid Mark, $240, by online transfer, having deducted 4% cash discount 28 Withdrew $400 cash from the bank for business use 29 Paid wages, $362, in cash 30 Paid motor expenses, $91, by cheque

1. (a)Complete Kadima's cash book on page 3. Balance the cash book and bring down the balances at 1 April 2025.[12]
2. (b)Kadima has received a bank statement dated 31 March 2025. The bank statement shows: 1 The cheque for motor expenses had not yet been presented to the bank. 2 The amount received from Merve was $357. Kadima has checked his records and found that the amount shown on the bank statement is the correct amount. REQUIRED (b) Calculate the amount for the bank balance which Kadima would show in his statement of financial position at 31 March 2025.[3]
3. (c)Kadima is considering stopping using cash and cheques in his business. All payments would be made directly from the bank account and all customers would be required to pay by bank transfer. He would allow cash discount of 5% for all payments received within 30 days of the invoice. REQUIRED (c) Advise Kadima whether or not he should make the above changes. Justify your answer by providing points for and against making these changes.[5]