The Cash Book of a business shows a favourable bank balance of £3,856 at 30 June 2012. After comparing the entries in the Cash Book with the entries on the related bank statement you find that:

(i) Cheques amounting to £218 entered in the Cash Book have not yet been presented for payment to the bank.

(ii) An amount of £50 entered on the Bank account of the Cash Book has not been banked.

(iii) An amount of £95 has been credited by the bank to the account in error.

(iv) The bank has credited and then debited the bank statement with an amount of £48, being A. Jones’ cheque which it forwarded on 1 July 2012 marked ‘insufficient funds – return to drawer’.

(v) Interest of £10 has been charged by the bank, but not yet entered in the Cash Book.

(vi) A cheque from a customer entered in the Cash Book as £88 had been correctly entered by the bank as £188.

Required:

(a) Show the additional entries to be made in the Cash Book and bring down the corrected balance.

(b) Prepare a bank reconciliation statement.