Question

Exercise 5: • Al Ain limited in August has a cash balance of $58,349 and a book balance of S60,209. Al Ain Company later earned an interest of 30 and paid 10 for all the printing checks and an error of 24 for his book balance statement. • Al Ain Company got some money, deposited 3,800 cash, and paid 1,925 for his outstanding payment to the bank. • He also paid 19 for an error in his cash account. You are required to prepare the Bank Reconciliation as on August 30 Exercise 6: • On September 30, the Cash account in the ledger of Robertson Company had a balance of $17,404 • The September bank statement shows a balance of $16,422 on September 30 and the following memoranda. • Credits • Debits • • $1,530 S425 Collection of $1,500 note plus interest S30 • NSF check: J. E Hoover . $45 • • $65 Interest earned on checking account Safety deposit box rent At September 30, deposits in transit were $4,450, and outstanding checks totaled $2,383. Instructions You are required to prepare the Bank Reconciliation as on September 30

Answer 1

Bank Reconciliation is a process of identifying the difference that exist between the company's bank balance as per bank statement supplied by bank and cash balance as per company's accounting records.

Al Ain limited
Bank Reconciliation
Aug 30
Particulars	Amount	Amount
Bank
Balance Aug, 30		$58,349
Add:
Error	$24
Deposit in Transit	$3,800	$3,824
		$62,173
Deduct:
Outstaning checks	$1,925
Total Deduction		($1,925)
Adjusted Bank Balance		$60,248
Cash
Balance Aug, 30		$60,209
Add:	$19
Interest	$30	$49
		$60,258
Deduct:
Error
Bank Service Charges Expense	$10
Total Deduction		($10)
Adjusted Book Balance		$60,248