1. On December 31, 2004, Shoppers Fair Supermarket's cash book (bank column) showed a balance of ( $ 630.91 ), but his bank statement showed a bank overdraft of ( $ 1128.93 ). The following discrepancies account for the difference: 
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3. a) Interest on fixed deposit ( $ 160 ) was credited shopper's Fairs bank account, but no entry had been made in the cash book. 
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5. b) Cheques paid to the following Creditors had not yet been presented for payment: 
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7. c) The following standing orders had been paid by the bank, but no entry had been made in the cash book: 
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9. d) A cheque paid to M Cole ( $ 55.00 ) had been entered correctly in the bank statement but was entered in the cash book as ( $ 50.00 ) 
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11. e) The bank had deducted charges of ( $ 14.25 ) but no record of this had been made in the cash book 
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13. f) Cash sales of ( $ 490.52 ) on March 31 had not yet been recorded in the bank 
14. You are required to prepare a bank reconciliation statement starting with the bank statement balance. (15 marks)

Answer rating: 100% (QA)

1 Start with the bank statement balance of an overdraft 112893 2 Add Inte... View the full answer