Q1 In June Mahabeer received his bank statement which showed that he had an over-drawn balance of $7 225 on his bank account. His cash book showed an overdrawn balance of $2 000. In checking his cash book with this bank statement balance, Mahabeer made the following observations: (1) (2) (3) (4) (5) (i) (ii) (6) End of the month bank charge of $16 entered on the bank statement, is not included in the cash book. A cheque made payable to McBean for $798 has been entered correctly in the bank statement but was entered in the cash book as $789. A cheque received and entered in the cash book from Singh for $5 700 was returned by the bank stating "words and figures do not agree". No correction has yet been made in the cash book. Deposits of $13 000 made to the bank account on March 28 and recorded in the cash book, do not appear on the bank statement. Cheques #22156 for $3 500 and #22158 for $2 000 have not been presented to the bank for payment. Required: Dividends of $8 000 paid directly to Mahabeer's bank account, is shown on the bank statement but has not been recorded in the cash book. Starting with the overdrawn cash book balance of $2 000, write up the bank account to bring it up to date. (6 marks) Prepare Mahabeer's Bank Reconciliation Statement as on 30th June, 2006. (4 marks)