Reference no: EM132508805

On 31 December 2018, the bank column of the C. Tech's cash book showed a debit balance of RM1,500 whereas the bank statement showed a credit balance of RM2,950.

On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book solution?

1. Dividend of RM240 had been paid directly to the bank
2. A credit transfer - H&M of RM260 had been collected by the bank. Bank charges RM30.
3. A direct debit of RM70 for the RA subscription had been paid to the bank.
4. A standing order of RM200 for C. Tech's loan repayment had been paid by the bank.
5. Tech's deposit account balance of RM1,400 was transferred into his bank current account.

A further check revealed that the following items:-

1. 2 cheques drawn in favour of CT Choo of RM250 and Haddock RM290 had been entered in the cash book but had not been presented for payment.
2. Cheques amounting to RM690 had been paid into the bank on 31 December 2018 but were not credited by the bank until 2 January 2018.

Required

Question a) Bring the cash book up to date;

Question b) Prepare a bank reconciliation statement as at 31 December 2018.