A young and inexperienced bookkeeper is having great difficulty in producing a bank reconciliation statement at 31 December. He gives you his attempt to produce a summarized cash book, and also the bank statement received for the month of December. These are shown below. You may assume that the bank statement is correct. You may also assume that the trial balance at 1 January did indeed show a bank overdraft of £7,000.12.

Required
a. A corrected cash book summary and a reconciliation of the balance on this revised summary with the bank statement balance as at 31 December, as far as you are able.
b. A brief note as to the likely cause of any remaining difference.

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1 Jan Opening overdraft Jan-Nov receipts Add: Discounts 1 Dec Dec receipts Dec receipts 31 Dec balance £ 39,500.54 500.02 178.19 121.27 14.92 16.88 3,100.00 171.23 1,198.17 Cash book summary - draft £ £ 35,000.34 7,000.12 40,000.56 47,000.68 12,000.34 329.26 4,469.40 16,799.00 10,734.75 12,000.34 47,000.68 37.14 192.79 5,000.00 123.45 678.90 1.47 19.84 10.66 10,734.75 16,799.00 Payments Jan-Nov Balance 30 Nov Payments Dec Cheque no. 7654 7655 7656 7657 7658 Direct debit 4 7659 Direct debit 5 Balance c/d