George has completed his financial statements for the year ended 31 March 2019, which showed a profit of $81,208, when he realised that no bank reconciliation statement had been prepared for that date. When checking the cash book against the bank statement and carrying out other checks, he found the following. (a) A cheque for $1,000 had been entered in the cash book but had not yet been presented. (b) Cheques from customers totaling $2,890 entered in the cash book on 31 March 2019 were credited by the bank on 1 April 2019. (c) Bank charges of $320 appear in the bank statement on 30 March 2019 but have not been recorded by George. 3 | P a g e (d) A cheque for $12,900 drawn by George to pay for a new item of plant had been mistakenly entered in the cash book and plant account as $2,900. Depreciation of $290 had been charged in the statement of comprehensive income for this plant. (e) A cheque for $980 from a credit customer paid in on 26 March was returned back after 31 March 2019 and George decided that the debit would have to be written off as the customer was now untraceable. (f) A cheque for $2,400 in payment for some motor repairs had been mistakenly entered in the cash book as a debit and posted to the credit of motor vehicles account. Depreciation at 25% per annum (straight line) is charged on motor vehicles, with a full year's charge calculated on the balance at the end of each year. (g) The total of the payments side of the cash book had been understated by $1,000. On further investigation it was found that the debit side of the purchases account had also been understated by $1,000. (h) George had instructed his bank to credit the interest of $160 on the deposit account maintained for surplus business funds to the current account. This the bank had done on 28 March. George had made an entry on the payments side of the cash book for this $160 and had posted it to the debit of interest payable account. (i) George had mistakenly paid an account for $870 for repairs to his house with a cheque drawn on the business account. The entry in the cash book had been debited to repairs on the premises account. (j) George had also mistakenly paid $540 to Paul, a trade supplier, to clear his account in the purchases ledger, using a cheque drawn on George's personal bank account. No entries have yet been made for this transaction. The cash book showed a debit balance of $4,890 before any correcting entries had been made. The balance in the bank statements is to be derived from your answer.