An extract from the Cash Book of Olive May Retail, along with particulars of its banking and a copy of the bank statement for the period, are shown below:

Required:

(a) Trace each item entered in the Bank account of the Cash Book into the bank statement and then trace each item reported in the bank statement into the Cash Book for the purpose of identifying:

■ Deposits awaiting clearance;

■ Cheques yet to be presented;

■ Any item not recorded in the Cash Book.

(b) Prepare a bank reconciliation statement as at 20 May 2012.

Transcribed Image Text:

2012 16.5 Balance b/f 17.5 18.5 18.5 20.5 20.5 20.5 Cash a/cc Cash a/ca Bank loan Cash a/cb Morrisd Sales - switch Bank account in the Cash Book £ 2012 Chq 16.5 54 17.5 55 17.5 56 18.5 57 19.5 58 19.5 59 20.5 20.5 20.5 20.5 20.5 15,200 3,971 10,000 2,500 1,800 245 3,650 37,366 - - 60 Purchases Rent a/c Rocco a/c Vehicle a/c Advertising Black a/c Cash - ATM Brown's a/c Charges Advertising Balance c/d £ 2,400 1,500 5,800 22,500 450 1,650 500 1,500 30 240 796 37,366