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On December 31, 2021 the Bank Statement shows an overdraft balance of $22,000 and the Cash account in the general ledger shows an overdraft of
On December 31, 2021 the Bank Statement shows an overdraft balance of $22,000 and the Cash account in the general ledger shows an overdraft of $22,500 for the same date. | ||||||||
The following discrepancies were noted on comparing the General Ledger with the Bank Statement for the same date: | ||||||||
1. | A cheque for $5,000 was deposited on December 27th, but has not been recorded on the bank statement. | |||||||
2. | Cheques for $30,000 were issued during December 2021, but only $17,000 were cleared in the month. | |||||||
3. | An amount of $1,000 for interest on overdraft balances was charged to the Bank Statement but we were only advised of this in January 2022. | |||||||
4. | A deposit made for $4,000 at the beginning of the month does not appear on the bank statement. | |||||||
5. | On December 17th, the bank statement shows a deposit for a dividend of $12,000 from a company where the H&R REIT has invested money. The same has been recorded in the general ledger on December 31, 2021. | |||||||
6. | A cheque received of $2,500 shown in our general ledger was dishonoured at the bank. | |||||||
Required: | ||||||||
Prepare a Bank Reconciliation statement as at December 31, 2021. |
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