Prepare bank reconciliation statement reconciling kay rogan

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Reference no: EM132608063

Kay Rogan's Cash Book at 30th November 2018 showed an overdrawn position of $3,630 although her bank statement showed only $2,118 overdrawn. Detailed examination of the two records revealed the following:

1. The debit side of the cash book had been undercast by $300.

2. A cheque for $1,560 in favour of Z Suppliers Ltd., had been omitted by the bank from its statement, the cheque having been debited to another customer's account.

3. A cheque for $182 drawn in payment of the telephone account had been entered in the cash book as $128 but was shown correctly on the bank statement.

4. A cheque for $210 from A. brooks having been paid into the bank was dishonoured and shown as such on the bank statement although no entry relating to the dishonour had been made in the cash book.

5. The bank had debited a cheque for $126 to Kay's account in error; it should have been debited by them to Ray Kogan's account.

6. A dividend of $90 on Kay's holding of Ordinary Shares has been paid direct to her bank account and no entry made in the cash book.

7. Cheques totaling $1260 drawn on 29th November had not been presented for payment

8. A lodgement of $1080 on 30th November had not been credited by the bank.

9. Interest amounting to $228 had been debited by the bank but not entered in the cash book.


Question (a) Make any necessary entries in the cash book.

Question (b) prepare bank reconciliation statement reconciling Kay Rogan's corrected cash book with her bank statement at 30th November 2018.

Question (c) Explain three reasons for preparing bank reconciliation statements.

Reference no: EM132608063


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