Problem on bank reconciliation

Problem 2:
The following information is available for reconciling the Bank Statement of Texaco Company on December 31, 2000.
(1) Cash account in ledger on 31 December should a balance of tk 12,761.96. The Bank Statement on the same day indicated a balance of tk 9,734.70.
(2) Cash receipts of 31 December worth tk5.846.220 has been mailed to the bank on that date but did not appear among the deposits in the bank statement.
(3) The paid cheque returned with the December Bank Statement disclosed two errors in the company, cash records cheque No. 936 for tk 504 had been erroneously recorded as tk 50.40 in the cash payment journal and cheque No. 942 of tk 245.50 has been recorded as tk 254.5. Cheque No 936 was issued in payment of advertising expenses and cheque No. 942 was for the acquisition of office equipment.
(4) Included with the December Bank Statement was on NSF cheque for tk 220 signed by a customer Mr. Hasan. This amount had been charged against the Bank Account on December 31.
(5) Of the cheque issue in December 2000, the following two cheques were not cleared from the Bank. Cheque No Amount (tk)
944 252.71
960 1,697.85

(6) A service charge for tk 340 had been charged by the bank in error to the Texaco Company.
(7) A non-interest bearing Note Receivable for tk 1,890 owned by the Texaco Company has been left with the banker for collection. On December 31, the Company received a memorandum from the Bank indicating that the note had been collected and credited to the company’s account after deduction of tk5.00 charge for collection. No entry has been made by the company to record the collection.
(8) A debit memorandum for tk 12.00 was issued by bank for printing of cheque books bearing Texaco company name and address.
Required: a) Prepare a Bank Reconciliation Statement, using the form in which both Bank and book balance are brought to a correct cash balance.
(b) Prepare the journal entries required to bring the records up to date.

Solution 2 (a)

RASU Co
Bank Reconciliation Statement
As on May 31, 2005

Balance as per bank statement
Add: Deposit in transit (2) Erroneous service charge (6)

Less: Outstanding cheques (5) No. 944 No. 960
Corrected Balance

Balance as per cash book
Add: Erroneous credit balance (3) Collected note (7)

Less: Erroneous credit balance (3) NSF Cheque (4) Service fees (7) Printing charge (8)
Corrected Balance

5,846.22
340.00

252.71
1,697.85

9.00
1890.00

453.60
220.00
5.00
12.00

9,734.70

6,186.22

(1,950.56)
13,970.36

12,761.96

1,899.00

(690.60)
13,970.36

(b) Journal
Date
Particulars
Ref
Debit (tk)
Credit (tk)

Erroneous credit balance
Service fees
Printing charge
Cash
Office Equipment Account receivable

453.60 5.00 12.00
1208.4

9.00 1670.00