Question

32. Using the following information, prepare a bank reconciliation for Candace Co. for May 31: (a) The bank statement balance is $2,936. (b) The cash account balance is $3,194. Outstanding checks amounted to $465. Deposits in transit are $655. The bank service charge is $50. A check for $97 for supplies was recorded as $79 in the ledger.

Answer 1

Candace Co. Bank Recociliation Statement For the Month end May 31 Particulars Amount($) Cash balance as per bank statement $ 2,936 Add:deposits in transit $ 655 Bank charges $ 50 Error: understatement of check $ 18 Less: Checks outstanding $ 465 correct balance $ 3,194 Balance as per cash books Add:Checks outsatnding Less:deposits in transit Bank charges Error: understatement of check correct balance $ 3,194 $ 465 $ 655 $ 50 $ 18 $ 2,936