Reference no: EM132856583

Linda Company's received the bank statement for the month of March 2021 that showed a credit balance of $9,505 as at 31 March 2021, however the cash at bank balances on the company's general ledger (before adjustments) showed a debit balance of $9,275.

The accountant found the following:

i) A cheque received on March 31, amounting to $3,250 was deposited at the end of the day, 31 March 2021 but was not on the bank statement.
ii) Unpresented cheques were: Cheque no. No. 203 $1,780 No. 245 $1,232 No. 260 $2,368
iii) The bank statement showed a returned cheque of $2,900 from a customer due to insufficient funds.
iv)The bank statement showed that UB Ltd, a customer had paid $1,800 by direct transfer to the bank.
v) GIRO payments to SPower Ltd for utilities expenses of $530 were found on the bank statement.
vi) Bank service fees of $270 was in the bank statement.

Required:

Problem a) Update the cash at bank account in the general ledger of Ting Company to make the necessary adjustments and show the corrected cash at bank balance at 31 March 2021.

Problem b) Prepare the bank reconciliation statement at 31 March 2021.

Problem c) Explain any three (3) purposes of preparing the bank reconciliation statement.