I need help with preparing a bank reconciliation. I am working out of the book A

Question

I need help with preparing a bank reconciliation. I am working out of the book Accounting 24th Edition by Warren/Reeve/Duchac on page 533, question 2 a-f. They give the following info:

Based on the following date, prepare a bank reconciliation for December of the current year:

a.) Balance according to the bank statement at December 31, $202,240.
b.) Balance according to the ledger at December 31, $175,440.
c.) Checks outstanding at December 31, $48,960.
d.) Deposit in transit, not recorded by bank, $21,120
e.) Bank debit memo for service charges, $540
f.) A check for $11,520 in payment of an invoice was incorrectly recorded in the accounts as $11,020.

Explanation / Answer

The bank reconciliation is as follows:

Particulars

Amount

Particulars

Amount

Balance as per bank statement

202240

Balance as per ledger

175440

Add:

Less:

Deposits not recorded

21120

Bank service charges

540

Error in recording the payment of cheque

500

Less:

Outstanding checks

48960

174400

174400

Particulars

Amount

Particulars

Amount

Balance as per bank statement

202240

Balance as per ledger

175440

Add:

Less:

Deposits not recorded

21120

Bank service charges

540

Error in recording the payment of cheque

500

Less:

Outstanding checks

48960

174400

174400

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