Kipling plc deposits all receipts and makes all payments by check. The following information is available from the cash records.
June 30 Bank Reconciliation
Balance per bank.............................................................£7,000
Add: Deposits in transit......................................................1,540
Deduct: Outstanding checks.................................................2,000
Balance per books............................................................£6,540

Instructions
a. Prepare a bank reconciliation going from balance per bank and balance per book to correct the cash balance.
b. Prepare the general journal entry or entries to correct the Cash account.