Hamid Ali is preparing his bank reconciliation statement at 30 June 2020. His bank statement shows an overdraft balance of $1027. The balance on the bank column in the cash book is $1031 (debit).

He has noted the following reasons for the difference:

(i) An outstanding lodgement of $3500 entered in Zubairs cash book on 30 June was credited on the bank statement on 3 July.

(ii) The bank imposed a service charge of $65.

(iii) A cheque issued to Jones for $350 was replaced when out of date. It was entered again in the cash book. Both cheques were included in the total of un-presented cheques of $1450.

(iv) A cheque amounting to $650 was received from a customer Mehran Khan on 24 June and deposited a day after. However, due to insufficient funds in Mehrans account, the bank informed the Mehran that the dishonored cheque had been debited to Hmaid Ali.

(v) Hamid Ali transferred $500 from his personal bank account into the business bank account. The bank recorded the transfer on 30 June, but no entry was made in business records.

(vi) A cheque issued to a supplier correctly shown on the bank statement as $325. Hamid incorrectly recorded this payment as $532.

Required:

1. Calculate bank balance to be shown in the balance sheet as at 30 June 2020.

(b) Prepare a statement to reconcile the bank statement balance to the corrected balance on the bank column of the cash book.