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Question B2 On 31st August 2019 Lexington's cash book showed an overdraft balance of £950 and the latest month-end bank statement showed a credit balance of £90

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Question B2 On 31st August 2019 Lexington's cash book showed an overdraft balance of £950 and the latest month-end bank statement showed a credit balance of £90. A check by the cashier revealed: a) Cheques received amounting to £400 had been entered in the cash book but not yet credited by the bank. b) On written instruction from Lexington the bank transferred £120 interest from an overseas account to its business current account. This transfer was recorded by the bank on 5th September 2019. Lexington credited its cash book with the transfer on 30th August 2019. c) Cheques drawn amounting to £750 had been entered in the cash book but not yet presented. d) Bank charges of £90 were recorded in the bank statement but had not been entered in the cash book e) Dividend income of £560 was recorded in the bank statement but had, also, not yet been entered in the cash book. f) The payments side of the cash book had been under added by £60. g) A cheque for £160 drawn on a personal account of Lexington has been recorded in the cash book, as if drawn on the business current account. h) A cheque issued to Long Island Ltd. for £70 was replaced when it became out of date. It was re-entered into the cash book but both cheques are still included in the unpresented cheques detailed above. Required: (a) Make such adjustments as are required to correct and update the cash book [12] as at 31st August 2019. (b) Prepare a statement reconciling the corrected cash book balance to the bank [8] statement balance at 31st August 2019.