Question

LITTLE'S FLORAL LTD.                                              
BANK RECONCILIATION STATEMENT                                               
                                              
The bank statement of Little's Floral Ltd. shows a final balance of £ 8,966 as of october 31, 2017. The present balance of the cash account in the ledger is £ 8,030.50. The accountant took the following steps:                                              
                                              
                                              
1)   Verified that canceled checks were recorded correctly on the bank statement.                                          
                                              
2)   Discovered that a deposit of £ 1,003 made on Oct 31, 2017 was not recorded on the bank statement.                                          
                                              
3)   Noted outstanding checks: no. 1916, £ 461; no. 2022, £ 119; no. 2023, £ 827; no. 2024, £ 67,                                           
                                              
4)   Found that check no. 2001 for £ 523 payable to Davis, Inc., on account, was recorded in the journal as £ 532. (The correct amount is £ 523)                                          
                                              
                                              
5)   Noted that a credit memo for a note collected by the bank from Lee and Brock, £ 600 principal plus £ 6 interest, was not recorded in the journal.                                          
                                              
                                              
6)   Noted that a debit memo for a collection charge and service charge of £ 5.50 was not recorded in the journal.                                          
                                              
7)   Noted that a debit memo for an NSF check for £ 125 from M.D. Scott was not recorded.                                          
                                              
8)   Noted that a £ 20 personal withdrawal by Roberta Little, the owner, using an ATM, was not recorded.                                          
                                              
Required:                                              
Prepare Bank Reconciliation Statement for Little's Flora Ltd. as on 31st October 2017.                                              
                                              

Answer 1

Little's Flora Ltd. Bank Reconciliation Statement As on 31st October 2017 Bank Statement 8,030.50 8.966.00 Ending Balance as per Bank Statement Additions; Deposit in transit Company's Books Ending Balance as per Cash Account Additions, Interest earned Error in recording check given to Davis(532-523) Collection of Notes Receivable 1,003.00 1,003.00 6.00 9.00 600.00 615.00 8,645.50 9.969.00 Deductions; Outstanding checks (461+119+827+67) 1,474.00 Deductions Withdrawls Service Charge NSF Check received Up - to date Cash Balance 20.00 5.50 125.00 1,474.00 8,495 150.50 8,495.00 Up - to date Cash Balance