Question:

Max Retail wants a bank reconciliation statement to be prepared for the month ended 30 September 2021 using the following information.

• Final balance in the Cash at Bank account in the ledger of Max Retail (after all entries arising from the bank statement had been entered) was $26,350 Dr.
• Balance shown by the bank statement at 30 September was $27,500 Cr.
• Cheques recorded in the cash payments journal but not presented to the bank for payment were:

Cheque no. Amount

• 25 $1,500
• 29 $1,150
• 35 $1,550

• A deposit of $3,500 appears as a deposit in the cash receipts journal but had not been recorded by the bank at the date of the statement.
• A cheque written by Max Retail, for $500 appeared incorrectly in the bank statement as $50.

Required:

Prepare the bank reconciliation statement at 30 September, 2021.