BANK RECONCILIATION QUESTION

Spencer and sons limited has a difference in its balance as per cash book and bank statement as
on 31st March 2023.
The following is noted:
1. Balance as per bank statement as on 31st March 2023 is Kshs. 50,000. The balance as per
the cash book is Kshs. 16,500.
2. Cheques of Kshs. 20,000 and Kshs. 10,000 had been issued as on 30th March 2023, but
had not yet cleared.
3. Insurance paid by the bank of Kshs. 2,000 had not yet been recorded in the cash book.
4. An outgoing cheque of Kshs. 10,000 had been recorded twice in the cash book. It is
accurately recorded in the bank statement.
5. A cheque payment of Kshs. 5,000 is recorded twice in the bank statement.
6. Dividends received of Kshs. 6,000 had only been recorded in the bank statement and not
in the cash book.
7. A cheque of Kshs. 5,000 was deposited 29th March 2023 and it does not reflect in the bank
statement.
8. Bank charges of Kshs. 500 were debited and only recorded in the bank statement.
Required:
a) Prepare the updated cash book
b) Prepare a bank reconciliation statement as at 31 March 2023