Explanation Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. Prepare bank reconciliation for Company H, as at August 31, to compute the adjusted ledger cash balance . Company H Bank Reconciliation August 31, 20-- Bank statement balance $1,383.00 Add: Error in recording check 237.25 1,620.25 Deduct: Outstanding checks: $260.50 425.10 331.00 1,016.60 Adjusted bank statement balance $603.65 Ledger balance of cash $801.65 Add: Deduct: NSF check from customer $180...

College Accounting (Book Only): A Career Approach

13th Edition

ISBN: 9781337280570

Author: Scott, Cathy J.

Publisher: South-Western College Pub

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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Chapter 6, Problem 5E

To determine

Prepare bank reconciliation for Company H, as at August 31, to compute the adjusted ledger cash balance.

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Chapter 6 Solutions

College Accounting (Book Only): A Career Approach

Ch. 6 - Prob. 1QY Ch. 6 - Prob. 2QY Ch. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QY Ch. 6 - Prob. 6QY Ch. 6 - Prob. 7QY Ch. 6 - Prob. 8QY Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ

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Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?

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