Question

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: $3,241 1,210 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 124 202 57 87 350 (820) $3,631 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts Disbursements Balance, December 31 $ 3, 631 42,750 (41,953) $ 4,428 The December bank statement contained the following information: Balance, December 1 Deposits Checks processed Service charges NSF checks Balance, December 31 $ 3,241 43,100 (42,018) (23) (450) $ 3,850 The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $640 was correctly recorded by the bank but was incorrectly recorded on the books as a $460 disbursement for advertising expense. Included in the bank's deposits is a $1,400 deposit incorrectly credited to the company's account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.

Answer 1

Answer for (Q-1)
		Bank Reconciliation statement
						Amount( in $)
	Balance as per bank statement					3850
	Add:
	Deposits Outstanding					3692
	Deduct:
	Outstanding Checks					935
	Bank Errors					1400
	Corrected Cash Balance					5207
	Balance as per Books					4428
	Add:
	Unaccounted Cheques to be entered in Bank Book					1432
	Deduct
	Services charges					23
	Error in recording check					180
	NSF Check					450
	Correct book balance					5207
Answer for (Q-2)
		Particulars			Amount( in $)	Amount( in $)
1	Bank Charges				23
	To Bank A/c					23
	(Being bank charges are entered)
2	Sundry Debtors(NSF Checks)				450
	To Bank A/c					450
	(Being cheques were returned)
3	Advertisements A/c				180
	To Bank A/c					180
	(Error in recording check)
4	Bank A/c				1432
	To Sundry debtors A/c					1432
	(Being unaccounted sundry debtors were were accounted for)
5	Bank A/c				1400
	To Los Gatos Company					1400
	(Being wrongly credited to bank A/c)