The cash book at December of Tatoo Trading, showed debit balance of RM but the bank statement of the same date showed RMcredit The following reasons were noted:
i Bank interest RM of an earlier overdraft had been charged by the bank on December.
ii On December, a cheque of RM which had been paid into the bank, but was returned unpaid because of lack of fund.
iii. An amount of RM paid into the bank on November had not yet appeared on the bank statement.
iv On December, a sum of RM paid into the bank had been entered in the cash book as RM
BBM
v On December, the bank has made a bankers order payment for insurance of RM which has not been recorded by Mohan.
vi On December, the bank account received a direct transfer of RM owed to Mohan from Hasan.
vii. On December, a cheque issued for RM had not been presented for payment.
Required:
a Prepare the necessary additional entries in the Cash Book, and show a corrected balance. marks
b Prepare a Bank Reconciliation Statement as at December beginning with Cash Book balance at the end of the month. marks
