Mr. Salim has started a Biscuit Manufacturing Company and opened a Business bank account in National Bank of Oman and every month end he checks his Cash book maintained by his accountant Mr. Asim in the company with the Bank book maintained by the banker. His Cash Book balance on 31st December 2019, was OMR 12,500, this did not agree with the balance as shown by the Bank Pass Book. In order to know why the balances are not equal in cash book and Bank book Salim asked his accountant Mr. Asim to do detailed Examination of the Cash Book and Bank Statement. It reveals that the company has paid into bank on 26th December, four chequesof OMR 7,000; OMR 10,000; OMR 2,000 and OMR 13,000; of these the cheque of OMR 2,000 was credited in January 2020. One of his customer Ali has paid cheque of OMR 1,500 which is entered in cash book but omitted to be sent to Bank. The Bank has debited Bank Charges in Bank book, not entered in Cash Book OMR 100.As per the instructions of Salim, Bank met a pay order and debited in Bank Book, but not entered in Cash Book OMR 900. Cheque received from Yasin sent to Bank without recording in Cash Book OMR 1,000.Salim issued Cheques to his creditors on 23rd December 2019, cheque to Ahmed for OMR 3,000 and cheque to Abeer OMR 4,000. But the cheque of Ahmed was presented after 31st December 2019. Every year end Bank pays Insurance Premium on behalf of Salim which is not entered in Cash Book OMR 400. Bank also credited for Interest received by Salim which is not recorded in Cash Book OMR 350. Salim has invested money in shares of Al maha Company and the bank has collected dividends and Credited in Bank Book, but not debited in Cash Book OMR 750. Salim has received cheque of OMR 900 from Mr. Khan which was dishonored but it was not recorded in company’s Cash Book. Based upon the following information you are required to prepare a Bank Reconciliation Statement for the month of December 2019 with details.
Mr. Salim has started a Biscuit Manufacturing Company and opened a Business bank account in National Bank of Oman and every month end he checks his
Based upon the following information you are required to prepare a
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