On July 12th 2010 One of our Client\'s cash book showed a debit balance of $4,00
ID: 2485800 • Letter: O
Question
On July 12th 2010 One of our Client's cash book showed a debit balance of $4,000.00.
His bank statement showed a balance of $4,270.00.
On comparison the following were found:
* check issued amounting to $2,500.00 has not been cashed
* The bank rejected checks amounting to $140
* Standing order for a staples order of $700 was noted.
* A customer paid $170 directly into the bank without any notice to our company
* Bank charges of $160 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 $1,650.00 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 .
balance per bank statement
Explanation / Answer
Bank reconciliation statement for the month
As on July 12th 2010
Balance per bank statement
$ 4,270.00
Add: Deposit in transit
$ 1,650.00
Less: Checks Outstanding
$ (2,500.00)
Adjusted Cash Balance
$ 3,420.00
Balance as per Client's cash book
$ 4,000.00
Less: Standing Order
$ (700.00)
Add: Amount paid by customer directly
$ 170.00
Less: Bank Charges
$ (160.00)
Add: Dividend paid in bank directly
$ 250.00
Less: Check Rejected by bank
$ (140.00)
Adjusted Cash Balance
$ 3,420.00
Bank reconciliation statement for the month
As on July 12th 2010
Balance per bank statement
$ 4,270.00
Add: Deposit in transit
$ 1,650.00
Less: Checks Outstanding
$ (2,500.00)
Adjusted Cash Balance
$ 3,420.00
Balance as per Client's cash book
$ 4,000.00
Less: Standing Order
$ (700.00)
Add: Amount paid by customer directly
$ 170.00
Less: Bank Charges
$ (160.00)
Add: Dividend paid in bank directly
$ 250.00
Less: Check Rejected by bank
$ (140.00)
Adjusted Cash Balance
$ 3,420.00
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