BANK RECONCILIATION The September 30 bank statement for MJM Ltd had an ending ba
ID: 2422022 • Letter: B
Question
BANK RECONCILIATION
The September 30 bank statement for MJM Ltd had an ending balance of $29,160.27. The cash account according to the company’s records was $33,164.52 as at the same date. The following additional data was available:
1. The company had made a deposit in the night box of $13,200.00 on the 30th after the branch was closed.
2. There were outstanding cheques totalling $13,432.75 as at September 30.
3. The bank service fee was $50.00 for the month.
4. A cheque in the amount of $10,075.00 deposited by MJM on September 28th had been returned NSF and the bank charged a $12.00 fee on the item. MJM had not known about the returned item until it received the bank statement.
5. A cheque in the amount $7,500 was processed through the bank account for $5,700. It was correctly recorded in the books.
6. A deposit was made directly into the bank account by a customer for $4,100 that was not recorded in the books at September 30th.
Required: Prepare the bank reconciliation for MJM Ltd for the month of September. Prepare the necessary journal entries.
Explanation / Answer
(Being direct deposited into bank by customer recoreded)
(Being direct deposited into bank by customer recoreded)
BANK RECONCILIATION of MJM LTD $ Cash Account Balance - 30Sept 33,164.52 Add: Receipts not recorded by MJM 4,100.00 Less: Payments (10,075.00) Bank Charges (50.00) Bank Charges (12.00) Closing Cash Balance - 30Sept 27,127.52 Closing Balance of Bank Account - 30Sept 29,160.27 Add: Money deposited but yet to be credited in Bank 13,200.00 Less: Cheque written but not presented (13,432.75) Less: Cheque Wrongly booked (7500-5700) (1,800.00) 27,127.52Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.