a) Silenac Inc. is maintaining a Bank account in Orlando Bank Ltd. At the end of the month

December, 2017, the cash book

of Silenac Inc. shows a Bank balance of Tk. 12,600. On the other hand, the bank

statement covering the month of December shows an ending balance of Tk 13,995.

The following additional information was obtained by Silenac Inc:

(1) A cheque paid to a vendor

for Tk. 650 had been entered in the cash book as Tk. 860.

(2) Cash deposited to the

Bank for Tk. 960 had been entered in the cash book as Tk. 690.

(3) A Transfer of Tk 720 from

the account to another Bank account in Loyds Bank was not recorded in cash

book. (4) Dividend received by Orlando Bank on behalf of Silenac Inc. for Tk.

120 was not informed to Silenac Inc. and yet to be recorded in the cash book.

(5) Cheque written in

December but not charged to the December Bank statement for Tk. 870.

(6) Bank charges of Tk. 350

was not recorded in Cash Book.

(7) A standing order payment

for Tk. 110 had not been entered in Cash Book.

(8) A cheque received from an

old customer for Tk. 650 was deposited in the Bank for collection: however, it

was returned by the bank marking "Not Sufficient Fund'

(9) Overdue interest charge

of Tk. 70 was not yet recorded in cash book

(10) A customer directly

deposited Tk. 2,000 in the Bank account which was not yet recorded in cash book

(11) The bank incorrectly

charged a check of N Oil Co. for the amount of Tk. 175 to Silenac Inc. account

Required:

1) Prepare the Bank

Reconciliation Statement for the month ended December 31, 2017 (6) 2) Prepare

necessary adjusting entries on the books of Silenac Inc.

b) Briefly explain the

necessity and purpose of preparing a Bank Reconciliation Statement.

Answer rating: 100% (QA)

a Silenac Inc Bank Reconciliation Statement For the month ended December 31 2017 Particulars Debit A... View the full answer