Question

Identify which of the following items are added to or subtracted from the unadjusted bank balance to arrive at the true cash balance. Distinguish the additions from the subtractions by selecting a + beside the items that are added to the unadjusted bank balance and a – beside those that are subtracted from it. The first item is recorded as an example. (If the item is not added to or subtracted from the adjusted book balance, leave the cell blank.)

Identify which of the following items are added to or subtracted from the unadjusted bank balance to arrive at the true cash balance. Distinguish the additions from the subtractions by selecting a + beside the items that are added to the unadjusted bank balance and a - beside those that are subtracted from it. The first item is recorded as an example. (If the item is not added to or subtracted from the adjusted book balance, leave the cell blank.) Reconciling Items Bank BalanceAdded or Adjusted? Subtracted? No Yes Bank service charge Outstanding checks Deposits in transit Debit memo Credit memo Certified checks Petty cash voucher NSF check from customer Interest revenue

Answer 1

In bank reconciliation statement, all errors and ommissions in the bank statement are corrected in the bank statement and all errors in books are corrected in the books
Reconciling Item	Bank Balance adjusted?	Added or Subtracted?	Reason
Bank Service charge	No		Adjusted in Books
Outstanding checks	Yes	-	Since bank has not deducted
Deposit in transit	Yes	+	Since bank has not added
Debit memo	No		Adjusted in Books
Credit memo	No		Adjusted in Books
Certified checks	No		No adjustment
Petty cash voucher	No		No adjustment
NSF check from customer	No		Adjusted in Books
Interest Revenue	No		Adjusted in Books