The bank account of P Watkinson & Co Ltd for the month of October 1999 appears in the firm’s ledger as follows:

The bank statement for October 1999, which was received on 5SN ovember 1999, is shown below.

Required:
Write up the bank account as necessary and then prepare a bank reconciliation as at 31 October 1999. Suggest reasons for any unexplained discrepancy between the bank account and the bank statement. (It may be helpful to begin by trying to reconcile the opening balances as at 1 October).

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Bank 1999 October 3 Sales 5 Sales 1999 Cheque October Number 483.42 1 Balance b/d 505.03 229.03 2 Petrol 314 37.20 9 D Reeves 2,887.77 4 Business rates 315 2,750.00 11 G Cotton 452.60 5 Bank charges (Sept) 12.50 14 P Jones Ltd 1,250.00 8 K Green 316 428.56 19 Sales 745.99 11 D Rivers 317 1,956.47 28 W Johnson 2,000.00 17 Cash 318 500.00 30 M Keane 110.78 22 S Stevens 319 280.00 24 T Waugh 320 450.65 30 Stationery 321 78.12 31 Salaries 322 956.49 31 Balance c/d 204.57 8,159.59 8,159.59 November 1 Balance b/d 204.57