Question

The following information is available for Pyle Garage for March, Year 2: BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 Pyle Garage Account number 629 Main Street 62-00062 HAZARD, GA 30321 March 31, Year 2 Beginning balance 3/1/Year 2 $9,047 Total deposits and other credits 29,912 Total checks and other debits 24,758 Ending balance 3/31/Year 2 14,201 Checks and Debits Deposits and Credits Check No. Amount Date Amount 1462 $3,770 March 1 $1,113 1463 1,662 March 2 6,514 1464 8,013 March 6 4,949 1465 2,912 March 12 6, 187 1466 1,418 March 17 5,980 1467 6,200 March 22 2,102 DM 33 CM 3,067 1468 750 The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2: Date March March Amount of Deposit $6,514 4,949 1 5 Date March 1 March 5 March 6 March 9 March 10 March 14 March 19 March 28 Check No. 1463 1464 1465 1466 1467 1468 1469 1470 Amount of Check $1,662 8,013 2,912 1,418 6, 200 95 1,517 761 March 10 6,187 March 16 March 19 March 29 5,980 2,102 3,566

Answer 1

Answer:

PYLE GARAGE
Bank Reconcilitation
March, Year 2
Particulars	Amount ($)	Amount ($)
Unadjusted Bank Balance, March,Year 2		14,201
Add : Deposit in transit	3,566
Less: Outstanding Checks
1469	1,517
1470	761
True Cash Balance,March 31,Year 2		15,489
Unadjusted book balance,March 31,Year 2		13,110
Add: Collection of Account Receivable	3,067
Less:
Check Number 1468 deducted with wrong amount (750-95)	655
Bank Service Charges	33
True Cash Balance,March 31, Year 2		15,489

Effect of Adjustments on the cash account will be:

Item No.	Effect on Cash Account
1	No effect on Cash Account as it was correctly recorded in cash account.
2	Cash will increase
3	Cash Account will reduce for recording check number 1468 with lesser amount
4	Cash will reduce by $ 33
5	No effect on Cash account as was correctly recorded in cash account.
6	No effect on cash account