13.3 Preparing a bank reconciliation
　　The bank statement should be adjusted for these items:
　　Balance per bank statement　　　　　　　　　　 X
　　Less: outstanding/ unpresented cheques (X)
　　Add: Deposit-in-transit　　　　　　　　　 X
　　Add: outstanding/unpresented lodgement　 X
　　Add/less: Bank error　　　　　　　　　　　 X
　　Balance per bank statement (revised)　　　　 X
　　Proforma bank reconciliations:
　　Example:
　　The following is a summary of Ami’s cash book as presented to you for the month of December 2006:
　　$　　　　　　　　　　　　 $
　　Receipts 　　　　　1,460　　 Balance b/f　　　　　761
　　Balance c/f　　　　　554　　　　Payments　　　　1,262
　　2,023　　　　　　　　　　　　2,023
　　All receipts are banked and payments made by cheques.
　　On investigation you discover:
　　1.Bank charges of $136 entered on the bank statement had not been entered in the Cash book.
　　2.A cheque for $22 had been entered as a receipt in the cash book instead of as a Payment.
　　3.A cheque drawn for $6 had been incorrectly entered in the cash book as $66.
　　What balance is shown in the bank statement at 31 December 2006?
　　A.$913
　　B.$674 overdrafts
　　C.$941
　　D.$407 overdraft
　　Solution: B