On June 12th 2009 One of our Client\'s cash book showed a debit balance of $4,00

Question

On June 12th 2009 One of our Client's cash book showed a debit balance
of $4,000.00.
His bank statement showed a balance of $6,270.00.
On comparison the following were found:

* check issued amounting to $3,500.00 has not been cashed
* The bank rejected checks amounting to $240
* Standing order for a staples order of $800 was noted.
* A customer paid $270 directly into the bank without any notice to our company
* Bank charges of $260 were entered in the bank statements only.
* A dividend of $250 was paid directly into the bank and not recorded
in the cashbook
* Checks for $2,650.00 were entered into the cash book and deposited in
the bank but had not been cleared (deposited).

Prepare a bank reconciliation statement for the month .

Explanation / Answer

Bank Reconcilliation June 30 Cash Balance per Bank Statement $6,270 Add: Deposits in Transit $2,650 Less: Outstanding Checks $3,500 Adjusted Balance per Bank $5,420 Cash Balance per Books $4,000 Add: Collections from Client $270 Add: Dividends $250 Less: Note Payable $800 Less: Bank Charges $260 Less: Rejected Checks $240 Adjusted Balance per Books $3,220

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