How to adjust the cash book balance and prepare a bank reconciliation statement with the folloeing are discovered:
(1) Thre chedues totalling $26500 entered in the cash book were not shown in the bank statement.
(2) A cheque for $7000 payment to T Tam was wrongly entered in the cash book as $1000. The cheque for $7000 was paid by the bank and shoen in the bank statement.