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8 Updating the cash book and preparing a bank reconciliation statement working from a list of items including emors in the cash book or bank statement On 31 August 2014 Shamara compared her cash book (bank columns) and bank statement for the August. On this date her cash book showed a debit balance of $2382 and the bank statement showed a balance of $1268 credit. Shamara has identified the following differences between the two records. - Bank charges of $84 which had been omitted from the cash book. - A cheque sent to a supplier, MBM Ltd, $332 had not been presented for payment. - A standing order for rent $485 hed not been recorded in the cash book. - The bank had not yet recorded cash sales of $1432 paid in on 29 August. - The bank statement included a credit transfer of $441 from a customer, G Parsons, which had not been recorded in the cash book. - A cheque for drawings $186 had been correctly recorded in the bank statement, but appears as 5168 in the cash book. - There was an error in the bank statement: some interest on Shamara's investments $132 had been credited to Shamara's business account rather than her personal account. a Update the cash book at 31 August 2014. b Prepare a bank reconciliation statement at 31 August 2014. GUIDANCE Don't forget to bring down the updated balance on the cash book and to give a full heading to the reconciliationstatement which includes the date. Working with a bank overdraft Rockfort Stores is a retail business. The following cash book (bank columns) was prepared during the month of January 2014

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