Reward Bros’ Cash Book reported a bank balance on 14 September 2012 of £17,240 which did not match the balance reported in the bank statement. Inquiries revealed that:

(i) Bank deposits totalling £15,940 were awaiting clearance;

(ii) Cheques to the value of £8,450 drawn by Reward Bros were yet to be presented to the bank;

(iii) A bank charge of £25 made by the bank had not yet been recorded in the Cash Book.

Required: 

Prepare a bank reconciliation statement as at 14 September 2012 using the two-stage approach by first identifying the correct bank account balance which should appear in the Cash Book and then reconciling that adjusted balance with the balance stated in the bank statement.