Bank Reconciliation Bank Reconciliation The following data were gathered to use

Question

Bank Reconciliation

Bank Reconciliation The following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank Balance per company records Bank service charges Deposit in transit NSF check Outstanding checks a. What is the adjusted balance on the bank reconciliation? 19,890 16,595 95 2,930 1,080 7,400 b. Journalize any necessary entries for Lays Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

Explanation / Answer

A) Bank reconcilation

Balance as per bank = $19890

+ Charges = $95

+ Deposit in transit = $2930

- Check o/s = $7400

+ NFS check = $1080

___________________

Balance as per company $16595

B) Journal entry

Bank charges Dr.        95

     Deposit in transit Dr.    2930

    NFS check Dr.               1080

         To Check outstanding A/c               7400

      Cash /Bank A/c Dr .              3295

(Adusted entry for bank reco.)

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