BANK RECONCILIATION CLASS EXERCISE QUESTION The following are extracts from the cash book and the bank statement of Corona Limited. You are required to: (a) Write the cash book up to date, and state the new balance as on 31 March 2020, and (b) Draw up a bank reconciliation statement as on 31 March 2020. Cash Book 1,010 2020 Dr K Mar 1 Balance b/d 34,190 7 Mulenga 22 Musonda 440 31 Banda 3,190 31 Munsankwa 2,460 41,290 2020 Cr (K) Mar 8 Muna 4,620 15 Mulemba 210 28 Misozi 2,090 31 Balance c/d 34,370 41,290 Cr K 1,010 Bank Statement 2020 Dr K Mar 1 Balance b/d 7 Cheque 11 Muna 4,620 20 Mulemba 210 22 Cheque 31 Credit transfer: Tembo 31 Bank charges 470 Balance K 34,190 35,200 30,580 30,370 30,810 31,740 31,270 440 930 Note for students Both in theory and in practice you can start with the cash book balance working to the bank statement balance, or you can reverse this method. Students should therefore be able to tackle them both ways. (a) Cash Book 2020 (Totals so far) 41,290 2020 (Totals so far) 6,920 Mar 31 Tembo 930 Mar 31 Bank Charges 470 31 Balance cld 34,830 42.220 42.220 (b) Bank Reconciliation Statement as on 31 December 2020 Balance per cash book 34,830 Add Unpresented cheque Misozi 2, 090 36,920 Less Bankings not yet on bank statement Mar 31 Banda 3,190 Mar 31 Musankwa 2460 5,650 Balance per bank statement 31.270 or Bank Reconciliation Statement as on 31 March 2020 Balance per bank statement 31,270 Add Bankings not yet on bank statement Mar 31 Banda 3,190 Mar 31 Musankwa 2.460 5,650 36,920 Less Unpresented Cheque Misozi 2,090 Balance per cash book 34,830