Prepare bank reconciliations (Covers LO 03) Part (A) The credit balance of the banks account of Arasan Business as at 31.03.2021 was Rs. 30,000.00. The book balance was not agreed with the bank statement on that date. The following information were revealed in the investigations. (1 Cheque deposit and date of realization are as follows, Cheque number Deposit date Realization date Value (Rs) 043250 30th March 2021 2nd April 2021 5,500.00 215412 31st March 2021 3rd April 2021 20,500.00 721210 31st March 2021 3rd April 2021 18,000.00 (11) The following deductions were made by bank from business as bank account, Deduction type Value (Rs.) Cheque book charges 400 Overdraft interest 1800 (111) Bank charges of 500 deducted by the bank recorded twice in the bank account of the business. (iv) Premium of proprietor's Life Insurance Policy (LIP) of Rs. 10,500.00 was paid by bank on 20th March 2021 on standing order. But it has not been recorded in a bank account of the business. (v) Cheques issued and dates of presented for the payment were as follows; Cheque number Deposit date Realization date Value (Rs) 010253 26th March 2021 10th April 2021 5,000.00 010262 31st March 2021 04th April 2021 20,500.00 010284 31st March 2021 04th April 2021 50.500.00 (vi) Business requested from the bank to stop for the payment for cheque issued for a creditor of Rs. 12,000.00 on 20th March 2021 and relevant adjustment was made in the business account, but it is revealed that payment was made by bank. (vii) An issued cheque of Rs. 8.900.00 already on 15th March 2021 was recorded correctly by the bank however it was recorded as Rs. 9,800.00 in the business account. (viii) A Cheque was issued by the business of Rs. 40,300.00 in the month of March however it has been dishonored on technical grounds. Requirement Apply relevant accounting procedures to check the book balance with the bank statement balance. You are required to provide relevant notes and extra calculations to support your answer. Go to

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