Shoe City Pty Ltd’s bank reconciliation clerk is unable to reconcile the bank balance at 31 January. The balance of the Cash at Bank account, before any entries for transactions initiated by the bank, was $4770.20 in the company records. The clerk’s attempt at the bank reconciliation statement is as follows: 

Required

(a) Prepare a correct bank reconciliation.

(b) Journalise the entries required by the reconciliation.

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Cash balance as per bank statement Add: Dishonoured cheque Less: Bank charges Less: Outstanding deposits Add: Unpresented cheques Cash balance as per company records $4392.20 Cr 516.00 30.00 708.00 876.00 $5046.20