30.5 Read the following and answer the questions below. On 31 December 2011 the bank column of C. Tench's cash book showed a debit balance of 1,500. The monthly bank statement written up to 31 December 2011 showed a credit balance of 2,950. On checking the cash book with the bank statement it was discovered that the following trans- actions had not been entered in the cash book: Dividends of 240 had been paid directly to the bank. A credit transfer - HM Revenue & Customs VAT refund of 260 - had been collected by the bank. Bank charges 30. A direct debit of 70 for the RAC subscription had been paid by the bank. A standing order of 200 for C. Tench's loan repayment had been paid by the bank. C. Tench's deposit account balance of 1,400 was transferred into his bank current account. A further check revealed the following items: Two cheques drawn in favour of T. Cod 250 and F. Haddock 290 had been entered in the cash book but had not been presented for payment. Cash and cheques amounting to 690 had been paid into the bank on 31 December 2011 but were not credited by the bank until 2 January 2012 (a) Starting with the debit balance of 1,500, bring the cash book (bank columns) up to date and then balance the bank account. (b) Prepare a bank reconciliation statement as at 31 December 2011. (Midland Examining Group: GCSE)