Question

2. Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 3 cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,746.46. Upon comparing the bank statement to the books, the following items were found a. A bank debit memo issued for an NSF check from a customer of $21.25. b. A bank credit memo issued for interest of $8.50 earned during the month. c. During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement. d. A bank debit memo issued for $18.50 for bank service charges. e. Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank. f. The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank. g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank.

Answer 1

Answer is as under :
Bank reconciliation statement is as under :
Particular	Amount ($)
Bank book closing balance as on 31 July	4,146.46
Add : Debit memo issue	21.25
Less : Interest received ( Credited in bank account but not debited in books of account and hence added)	-8.50
Add: Deposited made but not shown in bank statement	1,948.25
Add : Bank charges deducted (Debited from bank account but not recorded in books of account )	18.50
Less : Payment debited in cash book but not debited from bank account ( Cheque given but not deposited and hence added back to arrived balance as per bank statement )	-145.10
Add : Previous month outstanding balance	7.38
Less : Bank error	-0.90
Balance as per bank statement as on 31 August 2018	5,987.34
	6105.42
	-118.08