Matthew's Cash Book at 31 July 2016 showed a debit balance of RM2,500. After comparing the bank statement with the Cash Book, it was found that the balances did not agree. The bank statement of the same date showed a credit balance of RM3,112. The discrepancy was due to the following items:
i. Interest on fixed deposit of RM200 credited direct to the account by the bank had not been recorded in the Cash Book.
ii. A customer's cheque of RM885 received on 30 July 2016 had been entered into Cash Book, but not credited by the bank until 1 August 2016.
iii. Cheques amounted to RM520 had been drawn by the company but had not yet been presented to the bank.
iv. A payment by Loo Trading of RM1,250 by direct transfer was not recorded in the Cash Book. v. The bank had wrongly charged a payment of RM98 made by Choo Enterprise to Hong Sdn Bhd's account.
vi. The bank returned a cheque of RM330 marked "refer to drawer" which had not been recorded in the Cash Book.
vii. Bank charges and interests of RM45 appeared in the bank statement but not in the Cash Book.
Required:
(a) Complete the Cash Book and carry forward the adjusted balance.
(b) Prepare Bank Reconciliation Statement as at 31 July 2016 to reconcile the adjusted Cash Book balance with the Bank Statement balance.