Question

Complete Bank Reconciliation

2. The deposits to the bank account, as recorded on the bank statement, are compared to the deposit slips retained by the company. It is noted that the last deposit, of $760, occurred after banking hours on the day of the bank statement and therefore has not been recorded by the bank on this bank statement. 3. Checks returned with the bank statement are compared to the checks written and listed in checkbook. This comparison shows that the following checks have not cleared the bank: Date Check written no Amount 7-Dec 1107 49.32 29-Dec 1109 24.65 29-Dec 1110 55.00 29-Dec 1111 378.00 4. Other information contained on the bank statement, not previously known to the company, is determined to be the following: • Interest earned for the month $24.80 • Monthly banking fee 15.00 • Check no 1108, which was written and recorded by the company for $378 to pay sales taxes due to the State of Maryland was recorded by the bank for $398. (The amount of $398 was deducted from our bank balance on 12/20.) Note: The taxes due were $378, not $398. • A customer paid an outstanding balance due to the company in the amount of $40.00 by EFT (electronic funds transfer). The deposit shows on the bank statement on 12/30.

Answer 1

Balance as per company is taken, now following adjustments will be required to reach the balance as per bank statement:-

2.

Deposit is recorded in books but not by bank so $760 will be deducted.

3.

Checks return are recorded by company but not by bank so we need to increase the balance; i.e. $49.32+$24.65+$55+$378 = $506.97 will be added to balance as per company to reach bank statement balance.

Interest earned of $ 24.80 is to be added to company balance.

Bank Charges of $15 are to be deducted from company balance.

Sales tax payment was of $378 but recorded in bank as $398 so more $20 should be deducted from company balance.

EFT of $40 is added in bank so to reconcile these $40 should be added to company balance.