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Q6. Ms. Sara has started a Furniture Manufacturing Company and opened a Business bank account in Bank Muscat and every month end he checks his

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Q6. Ms. Sara has started a Furniture Manufacturing Company and opened a Business bank account in Bank Muscat and every month end he checks his Cash book maintained by his accountant Mr. Ali in the company with the Bank book maintained by the banker. His Cash Book balance on 31" December 2019, was OMR 22,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Sara asked his accountant Mr. Ali to do detail Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26 December, four cheques of OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020.Sara has invested money in shares of Al Maha Company and the bank has collected dividends and Credited in Bank Book, but not debited in Cash Book OMR 1,750.The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions of Sara, Bank met a pay order and debited in Bank Book, but not entered in Cash Book OMR 900. Cheque received from Yasin sent to Bank without recording in Cash Book OMR 1,000. Sara issued Cheques to her creditors on 23rd December 2019, cheque to Ahmed for OMR 3,000 and cheque to Abeer OMR 4,000. But the cheque of Ahmed was presented after 31 December 2019. Every year end Bank pays Insurance Premium on behalf of Sara which is not entered in Cash Book OMR 400.Bank also credited for Interest received by Sara which is not recorded in Cash Book OMR 350.Sara has received cheque of OMR 900 from Mr. Khamis which was dishonored but it was not recorded in company's Cash Book. One of his customer Ali has paid cheque of OMR 11,500 which is entered in cash book but omitted to be sent to Bank Based upon the following information you are required to prepare Bank Reconciliation Statement

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