Yatish is a trader. He compared his cash book with his bank statement on 30 June. The cash book showed an overdrawn balance of $2,356.

The following differences between the cash book and the bank statement were discovered:

1. Cheques not yet presented for payment
                                                                                           $
Hemisha ..............................................................       428
Ben .......................................................................       910

2. Cash sales, $950, were not recorded on the bank statement.

3. The bank had debited $50 to the business bank account which should have been debited to Yatish’s personal bank account.

a. Prepare a bank reconciliation statement to show the balance on the bank statement.

b. Explain the difference between a bank statement and a bank reconciliation statement.

c. Explain why the entries on a bank statement are on the opposite side to where they appear in the cash book.