The following information was extracted from the book of Forest Company on 31 January 2005.

Cash Book (Bank Column)

Additional information

On 30 January, Forest Company wrongly debited a commission expenses of RM120.00. After further investigation, the following information was obtained:

1. Transfer of credit from Mind Company and Smart Ltd of RM2,985.69 and Rm140.00 each respectively were credited in the bank statement. These amounts were not recorded in the business cash book.
2. Cheque no 750 for RM824.00 was not a cheque issued by Forest Company, as the cheque number is different from the cheque issued by Forest Company. This chq was issued by another company, but was wrongly recorded by the bank in Forest Company bank statement.
3. The bank statement was debited with RM681.00 for payment to an insurance company, ABC Insurance Company. This is a standing order given by Forest Company. This entry was not recorded in the cash book.
4. Cheque no 659 issued by Forest Company for RM120.00 was wrongly recorded in the cash book as a receipt. The bank has cleared the cheque and it was correctly recorded in the bank statement.
5. Bank statement was debited with RM7.50 for cheque book charges. This was not recorded in Forest Companys book.
6. Payment of RM220.00 (chq no 651), RM4,430.10 (chq no 654), RM70.40 (chq no 655), RM610.60 (chq no 656) and RM1226.63 (chq no 657) have been recorded in Forest Companys cash book. However, the payment have not been debited in the bank statement because the cheque were not yet presented to the bank by the recipients of the cheques.
7. Receipt from Account receivable Amin for RM600 was recorded in the cash book but was not recorded in the bank statement. This represents a cheque not yet credited on the date the bank statement is issued.

Requirement: Prepare a bank reconciliation statement by updating the cash book

FOREST COMPANY Bank statement for the month ended 31st January 2005 Debit Credit 2,985.69 1,100.00 1,862.09 824.00 Date Particulars Jan-01 Balance 17 Transfer of credit (Mind Company) 17 Cash depo 19 CP-Cheque no 653 20 CP-Cheque no 750 22 Transfer of credit (Smart Ltd) 30 CD- Cheque no 2800 30 Standing Order (ABC Insurance) 30 CP - Cheque no 659 30 CP - Cheque no 658 31 CP - Cheque no 652 31 Cheque book 140.00 4,495.00 Balance (RM) 15,802.43 18,788.12 19,888.12 18,026.03 17,202.03 17,342.03 21,837.03 21,156.03 21,036.03 20,595.53 20,309.09 20,301.59 681.00 120.00 440.50 286.44 7.50 FOREST COMPANY Cash Book (Bank Column) For the year of 2005 Date Particulars Cheque No Amount (RM) Jan 1 Balance 15,802.43 16 Sales 1,100.00 16 Sales 2800 4,495.00 30 Comission expenses 659 120.00 31 Account rec (Amin 9698 600.00 Date Particulars Jan-10 Furniture Company 12 SXY Company 14 Purchases 17 Purchases 28 Purchases 29 Furniture 29 SXY Company 30 Purchases 30Purchases 31 Balance c d Cheque No Amount (RM) 650 603.60 651 220.40 652 286.44 653 1,862.09 654 4,430.10 655 70.40 656 610.60 657 1,226.63 658 440.50 12,366.67 22,117.43 22.117.43 12,366.67 Feb 1 Balance bd