Simon’s Corner Shop received its bank statement reporting an overdraft, as at 14 May 2012, of £29,800. Inquiries revealed the following:

(i) A payment by cheque of £72,800 to a supplier has been entered in the Cash Book as £78,200.

(ii) Deposits awaiting clearance on this date amounted to £32,400.

(iii) Bank charges of £14 have been entered twice in the Cash Book.

(iv) The Cash Book did not record the following:

■ £400 paid by standing order as subscription to London Chamber of Commerce;

■ £54 charged by the bank as interest on the overdraft;

■ £12,500 received from a customer by credit transfer.

(v) Cheques amounting to £18,500 are yet to be presented to the bank.

Required:

(a) Prepare a bank reconciliation statement as at 14 May 2012.

(b) Show the Bank account in the Cash Book incorporating the necessary corrections.