Accounting · Bank Reconciliation Statement

An auditor is reviewing the following bank reconciliation statement prepared by a client: Balance per bank statement at 31 May 20X5: $4,200,000 Adjusted for: Unpresented cheques: ($1,200,000) Outstanding lodgements: $3,200,000 Balance per cash book at 31 May 20X5: $6,200,000 The following issues were identified during testing: (1) Cheques totalling $300,000 which were not posted by the bank until 2 June 20X5 are included in the cash book at the year-end as unpresented. (2) Customer payments totalling $700,000 paid into the bank on 3 June 20X5 are included in the cash book at the year-end as outstanding lodgements. (3) Bank charges for May 20X5 totalling $100,000 were not recorded in the cash book until June 20X5. What is the combined effect of these issues on the correct cash book balance at 31 May 20X5?