september 2019, and two months have passed since you first met with Mr and Mrs Wheeler to assist them with implementing their inventory system and preparing their accounting records.

They have come to you for some assistance as the balance in the 'bank' T-Account at the end of August 2019 doesn't agree with the closing balance on the August bank statement... and they are not sure what they have done wrong.

The August 2019 bank statement appeared as follows:

Bank statement for August 2019

date Description deposit withdraw balance

1/8/2019 opening balance $12060

2/08/2019 Deposit 500 $12560

5/08/2019 cheque 3 200 $12360

7/08/ 2019 cash deposit 36000 $15960

12/08/19 EFT - red bikes rock ltd 2200 $13760

16/08/2019 EFT -red bikes rock ltd 190 $13570

16/08/2019 cash deposit 4200 $17770

19/08/19 cheque 5 280 $ 17490

20/08/19 cheque 6 250 $17240

23/08/19 EFT-Red bikes rock ltd 4300 $12940

23/08/19 cash deposit 3400 $16340

25/08/19 cheque 7 2000 $14340

26/08/19 cheque 10 260 $14080

30/08/2019 cash deposit 5000 $19020

31/08/2019 Annual bank fee 60 $ 19020

31/08/19 interest 20 $19040

31/08/19 closing balance $19040

Little Red Riding's accounting records for August 2019 showed an opening balance for the 'bank' account of $12,060, which agreed with the bank statement at 31 July 2019.Following is a summary of deposits and withdrawals recorded by Mr and Mrs Wheeler in their accounting records during August:

With drawls Deposit

Amounts

date details amounts date banked

2/08/19 cheque 3 200

15/08/19 EFT- Fat freight ltd 199 7/08/19 3600

16/08/19 cheque 4 160 16/08/19 4200

18/08/19 cheque 5 280 23/08/19 4300

18/08/19 cheque 6 250 30/08/19 500

23/08/19 EFT- red bikes rock ltd 3400

22/08/19 cheque 7 2000

23/08/19 cheque 8 260

25/08/19 cheque 9 390

25/08/19 cheque 10 260

Total 7399 12600

The bank did not make any errors.

a letter to Mr & Mrs Wheeler, explaining why the bank balance in the ledger account (or T-Account) won't always equal the balance on the bank statement on a particular date, and common reasons for differences.Also provide an introduction and overview of bank reconciliations - What is a bank reconciliation? What is its purpose? How is it prepared? explain in details

ii) the bank reconciliation for Little Red Riding at 31 August 2019. excel

iii) the journal entries to correct any errors made by Little Red Riding, and to record transactions that have not yet been entered into the business's accounting records.(Note: The correction of any errors relating to the recording of cheques or EFT payments should be made to 'Accounts payable'.The correction of any errors relating to deposits (other than interest received) should be made to 'Accounts receivable'.)

iv) the 'bank' T-Account account for August 2019, in order to determine the balance in the ledger account after the above journal entries have been recorded and posted.