Question

BANK RECONCILIATION XTRA CREDIT Balboa company sells refrigerators to the general public. On November 30,2009 Its cash ledger balance was 15,890. The bank balance was 17,420 A review of Balboa's transactions revealed the following: • Balboa wrote 75,000 worth of checks. However a check for $2,500 from September and one for $3200 from August had not cleared the bank as of November 30. Cash receipts total 5,200. An EFT for 1000 was made to Jones Inc. for refrigerators purchased on credit. A check that was written for 2300 was recorded by the bank for 300. A check for 4100 that was made out to Sampson Rentals for the monthly rent was recorded in the cash ledger for 1400. Johnson a customer made a $7500 loan payment in the bank. The customer signed a note when the loan was made. (Loan principal was 7000 and interest was 500) An NSF check for 3120 was returned and a $30 fee was charged to Balboa's account A check for 2,000 made out to Lewis Inc. was correctly recorded by the bank but was never recorded in the cash ledger. The bank paid $380 for interest earned on the checking account.

Answer 1

Solution of the above problem is as under:

Bank Reconciliation Worksheet

Bank Statement	Amount ($)
Balance at November 30, 2009	17420
Less: Cheques issued but not cleared amounting to $ 2500 & $ 3200	-5700
Add: Cash Receipts	5200
Add: EFT made to Jones Inc. for refrigerators purchased	1000
Less: Cheque written for $2300 wrongly recorded by bank for $300, Difference recorded	-2000
Add: Cheque issued to Sampson Rentals amounting to $4100 recorded in Cash Ledger for $1400, Difference adjusted	2700
Less: Loan repayment by the customer directly into bank	-7500
Add: NSF Cheque for $ 3120 returned and a $ 30 fee was charged by bank	3150
Add: Cheque issued to Lewis Inc. not recorded in Cash Ledger	2000
Less: Interest credited by Bank	-380
Adjusted Bank Balance	15890

Cash Ledger	Amount ($)
Balance at November 30, 2009	15890
Add: Cheques issued but not cleared amounting to $ 2500 & $ 3200	5700
Less: Cash Receipts	-5200
Less: EFT made to Jones Inc. for refrigerators purchased	-1000
Add: Cheque written for $2300 wrongly recorded by bank for $300, Difference recorded	2000
Less: Cheque issued to Sampson Rentals amounting to $4100 recorded in Cash Ledger for $1400, Difference adjusted	-2700
Add: Loan repayment by the customer directly into bank	7500
Less: NSF Cheque for $ 3120 returned and a $ 30 fee was charged by bank	-3150
Less: Cheque issued to Lewis Inc. not recorded in Cash Ledger	-2000
Add: Interest credited by Bank	380
Adjusted Cash Balance	17420