Bell Food Store developed the following information in recording its bank statem

Question

Bell Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 $3,664 Balance per bank statement March 31 $10,900 Checks written in March but still outstanding $7,000. Checks written in February but still outstanding $3,100. Deposits of March 30 and 31 not yet recorded by bank $5,200. NSF check of customer returned by bank $1,200. Check No. 210 for $593 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $539. Bank service charge for March was $50. A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March. The bank collected a note receivable for the company for $3,000 plus $100 interest revenue. Prepare a bank reconciliation at March 31.

Explanation / Answer

Bank Reconciliation Statement Particulars Amount $ Cash Balance per bank          10,900 Add: Deposit is not enetred by bank            5,200 Less: Checks written in march still Outstanding         7,000 Less: Checks written in February still Outstanding         3,100 Less:Check payment wrong entered             540 Less:Notes receivable collected by bank         3,100          13,740 Add: NSF Check returned by bank         1,200 Add: Cheque correctly issued by bank but wrong enetred in cash book               54 Add: bank Service Charges               50            1,304 Cash Balance per Book            3,664

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