Question 2 (20 Marks) Olivine Bhd had a debit balance of RM14.420 in the cashbook on 31 December 2019. The Bank Statement received for the month showed a credit balance of RM34.907. On comparing the cashbook with the Bank Statement, the following were discovered: 1. Cash sales of RM955.20 on December, 21 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for RM965.20. The bank credited Olivine Bhd for the correct amount. 2. Bank charges amounting to RM150 appear on the Bank Statement but not in the firm's records. 3. On December 18 the company issued cheque No. 1181 for RM658 to Amber Sdn Bhd on account. The check, which cleared the bank in December, was incorrectly joumalized and posted by Olivine Bhd for RM685. 4. A deposit entry of RM6,500 which appears in the cashbook at 31 December 2019 had not yet been credited in the bank statement. 5. The last check entered in the cash payment, No 1234, for RM12,100 appears in the bank statement as RM1,210. An examination of the cashbook reveals that the bank figure is correct. 6. Check No 1236 for RM1,060 has been correctly debited in the bank statement but not shown in the cashbook of the firm. The checks No1237 RM3,000 and No1238 RM7,000 drawn by the firm have not yet been presented to the bank. 8. A RM3,000 note receivable was collected by the bank for Olivine Bhd on December, 31 plus RM80 interest. The bank charged a collection fee of RM20. No interest has been accrued on the note. 9. A check amounting to RM3,500 which was recorded as a receipt in the cashbook was returned to the firm by the bank, stamped with the word 'insufficient funds". 10. The bank had paid out for RM200 for the firm as per standing order. This amount was yet to be recorded in the cashbook. 11. The firm had recorded a check received for RM780 as a check for RM730. The bank statement showed a correct amount. 12. A monthly direct debit payable to a leasing company for RM2,000 was wrongly paid twice by the bank. Required: Prepare the bank reconciliation at 31 December 2019. | 7