Question

Match the term and the definition. 1. Step 1 х 2 3 х Answer is complete but not entirely correct. DEFINITION TERM Subtract outstanding checks from the bank balance. Compute the adjusted bank balance. Step 3 Enter the bank statement balance from the bank statement Step 2 Add any unrecorded deposits to the bank balance. Step 5 Compute the adjusted book balance Step 7 Add any unrecorded interest earned to the book balance Step 4 Enter the company's book balance from its accounting records Subtract bank fees from the book balance Step 6 4 X 5 6 X 7 Step 8 x 8

Answer 1

Question 1

Steps for Bank Reconciliation Statement

S.No.	Particulars	Steps
1	Subtract outstanding checks from bank balance.	Step-3
2	Compute the adjusted bank balance.	Step-4
3	Enter the bank statement balance from the bank statement.	Step-1
4	Add any unrecorded deposits to the bank balance.	Step-2
5	Compute the adjusted book balance.	Step-8
6	Add any unrecorded interest earned to the book balance.	Step-6
7	Enter the company’s book balance from its accounting records.	Step-5
8	Subtract bank fees from the book balance.	Step-7

The format of the same is detailed in Question-4

Question 2

Journal Entry for Interest Earned

Date	General Journal	Debit	Credit
June 30	Bank a/c                                    Dr	150
	To Interest a/c		150
	(Being interest credited in bank)

Question 3

The listing of cash received via mail should be sent to each of the following individuals:

Cashier - Yes

Customer - No

Record Keeper - Yes

Mail Clerk - Yes

Treasurer - No

Question 4

Marbel Company’s Bank Reconciliation Statement 30-06-20XX

Particulars	Amount ($)	Amount ($)
Balance as per bank statement		26,960
Add: Deposit in transit on June 30	3,000	3,000
		29,960
Less: Outstanding checks at June 30	4,000	4,000
Adjusted Balance		25,960
Balance as per bank statement		26,620
Add: Unrecorded interest earned	150	150
		26,770
Less: Check issued #1221 wrongly recorded as $4,090 instead of $4,900            (4,900-4,090)	810	810
Adjusted Balance		25,960

The adjusted bank and book balance of Marbel Company is $25,960