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

Cash Book (Bank Column)

Bank Statement for month ended 31 /1/2005 Forest Company
Date	Particulars	Dt	Ct	Bal
1	Bal			15802.43
17	Transfer to credit (Mind Company)		2985.69	18788.12
17	Cash Depo		1100.00	19888.12
19	CP - Cheque no 653	1862.09		18026.03
20	CP - Cheque no 750	824.00		17202.03
22	Transfer of credit (Smart Ltd)		140.00	17342.03
30	CD - Cheque no 2800		4495.00	21837.03
30	Standing Order (ABD Insurance)	681.00		21156.03
30	CP- Cheque no 659	120.00		21036.03
30	CP - Cheque no 658	440.50		20595.53
31	CP - Cheque no 652	286.44		20309.09
31	Cheque book	7.50		20301.59

Cash Book (Bank Column) for the year of 2005 for FOREST COMPANY
Particulars	Cheque No	Amount (RM)	Date	Particulars	Cheque No	Amount (RM)
Balance		15802.43	10	Furniture Company	650	603.6
Sales		1100	12	SXY Company	651	220.4
Sales	2800	4495	14	Purchases	652	286.44
Comission expenses	659	120	17	Purchases	653	1862.09
Account rec (Amin)	9698	600	28	Purchases	654	4430.1
			29	Furniture	655	70.4
			29	SXY Company	656	610.6
			30	Purchases	657	1226.63
			30	Purchases	658	440.5
		22117.43	31	Balance		12366.67
Balance b/d		12366.67				22117.43

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.

Prepare a bank reconciliation statement by updating the cash book. (80 marks)

KINDLY ANSWER QUESTION A - G