The cash book (bank columns) of Ella for the month of May 20–7 were as follows:

Ella’s bank statement for May 20–7 showed the following:

The following errors were discovered:

1. Ella had overcast the debit side of her cash book by $100.
2. The bank should have charged the motor insurance to Ella’s personal bank account not the business bank account.

a. Update Ella’s cash book. Bring down the updated balance on 1 June 20–7.
b. Prepare a bank reconciliation statement for Ella at 31 May 20–7.
c. Prepare a relevant extract from Ella’s statement of financial position at 31 May 20–7 showing the entry for the bank balance.

Transcribed Image Text:

Cash book (bank columns only) Date Details Folio Date Details Folio $ 20-7 20-7 May 1 Balance b/d 398 May 10 Lily 113 14 William 87 29 James 246 31 Sales 684 31 Balance c/d 910 1169 1269 20-7 Junel Balance b/d 910