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Question - The month of August 2017 has just ended and you recived a bank statement showing an overdraft balance of £ 20,000. The balance recorded in the company's cash book is a credit balance of £ 12,100.
1) Lodgements not yet cleared by the bank (i.e. payments recored in the cash book but not recorded in the bank statement) £ 24,300
2) Cheques not yet presented (i.e payments from the account recorded in the cash book but not yet processed through the bank) £ 18,900 3) Bank charges of £ 1300
4) A dishonoured cheque from a customer £ 1,200
Items (3) and (4) have not yet been recorded in the cash book.
How to make a bank reconciliation statement for 31st August 2017 for this company?
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