1. The firm’s Cash Book showed a Dr. balance of S$7,522 on 31st
January 2004. The Bank statement showed a different balance. The
following differences were discovered.
1. A cheque of S$364 issued to a creditor was not reflected in the bank statement.
2. Cheques totalling S$147 deposited on 30th January were not credited.
3. Bank paid S$240 to insurance company per standing order.
4. Bank charges, S$86.
5. A cheque of S$132 from K Sly deposited on 27th January was returned unpaid. This was not recorded in the Cash Book.
1.Update the Cash Book
2.Prepare a Bank Reconciliation Statement as at 31st January 2004
|Bank Reconciliation Statement|
|Deduct : Uncleared Cheques||364|
|Add: Deposit in transit||147|
|Adjusted Balance in Bank Statement||7064|
|As per firm cash book balance on 31st, january 2004||7522|
|Less: Insuarance charges||240|
|Less: bank charge||86|
|Less: Written Cheque||132|
|Adjusted cash Balance||7064|
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