Antigua Trading Co. recently received its bank statement for themonth of July 2001. However, the ban

Antigua Trading Co. recently received its bank statement for themonth of July 2001.
However, the bank balance as stated in its cash book differ fromthe balance which
appeared on the bank statement. The accountant of Antigua TradingCo. discovered the
following items that accounted for the difference in the twobalances:
(i) Nine cheques totalling $14,823, which had been issued duringthe month of July 2001 did
not appear on the bank statement.
(ii) An overseas debtor of the firm had her bank transfer funds tothe bank of Antigua
Trading to settle a debt of $8,178.
(iii) The bank through a standing order had paid the firm’sinsurance premium of $3,515.
(iv) A cheque for $6,238 drawn on the account of Antigua Trust Co.was incorrectly debited
by the bank to the account of Antigua Trading Co.
(v) A cheque received from a customer for $2,504 was lodged to thebank account but it was
incorrectly recorded in the books of the firm as $2,584.
(vi) Bank charges of $180 were debited to the firm’s account by thebank.
(vii) A lodgement of $15,570 made at the night depository on July31, 2001 did not appear on
the bank statement.
(viii) A cheque for $9,850 was lodged to the bank but appearedincorrectly on the bank
statement as $9,580.
(ix) The debit balance on the bank account as per the cash book onJuly 31, 2001 was $5,977.
Required:-
(a) Prepare an updated cash book showing the corrected bank balanceat July 31, 2001.
(b) Using the corrected bank balance found in (a) above, prepare abank reconciliation
statement as at July 31, 2001 to determine the bank balance as perthe bank statement.

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