Reference no: EM132763897

You have collected the following information by comparing the accounting records of Ezytravel with their bank statement as at 30 June 2020.

i. Cash account on 30 June 2020 was a debit balance of $9,529.
ii. The bank statement at 30 June 2020 has a credit balance of $12,175.
iii. Deposits not recorded in the bank statement, $1,800.
iv. Cheques were not presented to the bank for payment at 30 June 2020, $5,795.
v. Bank charges on the bank statement, $50.
vi. A credit for an electronic transfer from a customer for $1000 in the bank statement.
vii. Interest earned of $15 on a term deposit recorded on the bank statement.
viii. Dishonoured cheque of $2,250 on the bank statement.
ix. Bank erroneously charged to Ezytravel account a personal cheque for $100, written by Bill Jones, the owner of Ezytravel.
x. Cheque for $1,326 was correctly paid by the bank but Ezytravel recorded the cheque amount as $1,362.

Required:

Problem a. Prepare the bank reconciliation statement at 30 June 2020 for Ezytravel.

Problem b. Although the process of bank reconciliation provides a measure of control over cash in a business entity, bank reconciliation is useless unless it operates within a good internal control accounting system. Briefly discuss this statement.