Answer:
1.
Balance at bank as per cash book $12,810
Add Unpresented Checks $17,865
Less Lodgements not yet credited ( $9,150)
Balance as per Bank Statement $21,525
<em>The bank has to make corrections of the error it has made - a note should be sent</em>
2.
J1
Cash $540 (debit)
Holland Co $540 (credit)
J2
Bank Charges $80 (debit)
Cash $80 (credit)
3. Cash Balance = $12,810
Explanation:
<em>Step 1 First Bring the Cash Balance in the Cash Book Up to Date by doing the following :</em>
Debit :
Balance as per Cash Book as at July 31, 20Y5 $12,350
Over stated Check - Holland Co 930-390 $540
Totals $ 12,890
Credit:
Bank service charges $80
Updated Cash Book - Cash Balance $12,810
Totals $ 12,890
<em>Step 2 Prepare the Bank Reconciliation Statement as follows</em>
Balance at bank as per cash book $12,810
Add Unpresented Checks $17,865
Less Lodgements not yet credited ( $9,150)
Balance as per Bank Statement $21,525
<em>The bank has to make corrections of the error it has made - a note should be sent</em>
J1
Cash $540 (debit)
Holland Co $540 (credit)
J2
Bank Charges $80 (debit)
Cash $80 (credit)
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