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Question - Mish Ltd. reported a cash balance of $41,000 in the general ledger, but the bank statement reported a balance of $31,400 at the end of September 2009.
You have ascertained that the bank cashed a cheque on this account, in the amount of $6,500, which was actually issued by Mish Ltd.; this was an error made by the bank. There was also an outstanding deposit of $5,900, an amount that was deposited by Mish at the end of September. Outstanding cheques were $3,000, and there was an error made by Mish's bookkeeper, who recorded a cheque to a supplier at $1,700 when it was really $2,600. Bank fees of $900 have not yet been recorded by Mish, and neither was a direct deposit of $1,600 by a customer, who paid Mish directly to Vish's bank account.
Required - Prepare the bank reconciliation at the end of September 2009.
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