Refer to the two financial records, the cash book and the Bank statement below to prepare a Bank Reconciliation statement.

Q1. Refer to the two financial records, the cash book and the Bank statement below to prepare a Bank Reconciliation statement. Step 1: Identify the final balance as per the Bank Statement. The final balance shown in the Bank Statement is K 500. Step 2: Identify deposits recorded in the Cash Book but not yet credited in the Bank Statement (Deposits not credited). • DS7 (K 30) is in the Cash Book and also appears as C/C (K 30) in the Bank Statement. So, it is not outstanding. • DS8 (K 50) is in the Cash Book but not in the Bank Statement. Total Deposits not credited = K 50. Step 3: Identify cheques recorded in the Cash Book but not yet debited in the Bank Statement (Unpresented cheques). • Cheque 106 (K 300) is in the Cash Book and also appears as 106 (K 300) in the Bank Statement. So, it is not outstanding. • Cheque 107 (K 70) is in the Cash Book but not in the Bank Statement. Total Unpresented cheques = K 70. Step 4: Prepare the Bank Reconciliation Statement. BALANCE AS PER BANK STATEMENT && K 500 \\ ADD: Deposits not credited (DS8) && K 50 \\ LESS: Cheques not presented (107) && K 70 \\ BALANCE AS PER THE CASH BOOK && K 480 Q2. Mary just checked her bank statement and found that cheque no. 1275 (K90.00) and 1280 (K70.00) have not been presented to the bank for payments. Her cash book shows a balance of K 487.00 and the bank statement a balance of K647.00. Prepare a Bank Reconciliation Statement. Step 1: Identify the given balances. • Balance as per Bank Statement = K 647.00 • Balance as per Cash Book = K 487.00 Step 2: Identify unpresented cheques. • Cheque 1275 = K 90.00 • Cheque 1280 = K 70.00 Total Unpresented cheques = K 90.00 + K 70.00 = K 160.00. Step 3: Prepare the Bank Reconciliation Statement. BALANCE AS PER BANK STATEMENT && K 647.00 \\ ADD: Deposits not credited && K 0.00 \\ LESS: Cheques not presented && K 160.00 \\ BALANCE AS PER THE CASH BOOK && K 487.00 Q3. Brown a local business man has checked his cash book balance against the latest bank statement and found out that: A: a deposit of K547.00 has not yet been credited to his account by the bank. B: Cheque nos. 15942 (K62.00) and 15955 (K399.00) have not been presented to the bank for payment. He's cash book shows a balance of K7438.00 and the bank statement a credit balance of K 7352.00. Prepare a bank reconciliation Statement. Step 1: Identify the given balances. • Balance as per Bank Statement = K 7352.00 • Balance as per Cash Book = K 7438.00 Step 2: Identify deposits not credited. • Deposit = K 547.00 Step 3: Identify unpresented cheques. • Cheque 15942 = K 62.00 • Cheque 15955 = K 399.00 Total Unpresented cheques = K 62.00 + K 399.00 = K 461.00. Step 4: Prepare the Bank Reconciliation Statement. BALANCE AS PER BANK STATEMENT && K 7352.00 \\ ADD: Deposits not credited && K 547.00 \\ LESS: Cheques not presented && K 461.00 \\ BALANCE AS PER THE CASH BOOK && K 7438.00