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Problem
Shoe City Pry Ltd's bank reconciliation clerk is unable to reconcile the bank balance at 31 January. The balance o the Cash at Bank account, before any entries for transactions initiated by the bank, was $4770.20 in the company records. The clerk is's attempt at the bank reconciliation statement is as follows:
Cash balance as per bank statement $ 4392.20 Cr
Add: Dishonoured cheque 516.00
Less: Bank charges 30.00
Less: Outstanding deposits 708.00
Add: Unpresented cheques 876.00
Cash balance as per company records $ 5046.20
Required:
1. Prepare a correct bank reconciliation.
2. Journalise the entries required by the reconciliation.
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