Reference no: EM132974019

At May 31, 2018 the bank balance for Haye's Stationary Supplies Ltd. was an overdraft of $5,759. The following discoveries were subsequently made:

1. The bank debited the bank statement with charges of $129 during May. This has not been recorded in the cash book

2. J. Pryce, a customer, transferred $2,500 into the business bank account. The bank made the transfer on 30 May, but no entry has been made in the cash book.

3. May 22nd , a cheque for $100 was paid to Ultra Ltd, however, this was mistakenly entered in the cash book on the debit side as $1,000.

4. Cheque number 543987 for $650 was issued to a supplier. It appears on the bank statement as $650 but It was incorrectly recorded in the cashbook as $560.

5. During the last few days in May, cheques for $457 and $620 were lodged. On the bank statement, these entries were not included until on the 3rd of June.

6. Two cheques issued in May for $500 and $442, were not presented to the bank until after 31 May.

7. On May 21 a cheque for $276 was received and recorded in the cashbook. On May 29 the cheque was dishonored, however, no adjustment was made in the cashbook.

8. Standing order payment of $400 was not recorded in the cash book

9. Payment for sundry expense of $70 was mistakenly recorded twice in the cash book

10. Cheque 1027654 for $1,400 was received, and erroneously recorded on the credit side of the cash book as $140.

11. Interest of $20 was credited in the bank statement but no entry was made in the cash book.

You are required to:

Problem (a) Prepare the updated cash book

Problem (b) Prepare a bank reconciliation statement as at 31 October 2019 for M. Matthews.