·ill Bell 6:11 PM learn.macewan.ca The cash receipts and the cash payments of Si
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·ill Bell 6:11 PM learn.macewan.ca The cash receipts and the cash payments of Silver Hills Estates Development fior Niovember 2017 ae as llr Cash Payments (Posting Reference is CP Cash Debit $3.436 Cash Credit 1819 Now. 5 1-723 13 15 112 24 520,608 $12.948 The Cash account of Silver Hills Estates shows a balance of rsso 526,983 on November 30, 2017 Outstanding amounts from the prev d eque "1218 for S400, and anda ber 31 dep siti the amourt.t month's bank reconciliation were che ur#1219 2,000. On December 3,207,Silver Hills Estates received this bank statement Balance Forwand EFT Rent Collection NSF Cheque 2.000 21613 EFT Issurance 816 Bank Collection Service Change Explanations EFT-electronic funds tranefes, NSF onsufficient fundsExplanation / Answer
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2. A bank reconciliation compares and reconciles the cash book balance and the cash at bank balance. Managers use a bank reconciliation to ensure the accuracy and completeness of the cash balance shown in the books of account by comparing the same with the bank balance confirmations. They ensure that cash transactions at the bank such as interest, bank service charges, collections, NSF checks etc. are recorded in the books of account in a timely manner. The bank reconciliation also brings out errors if any in recording amounts of cheque payments and deposits in the books by comparing the same with the bank account statement and arriving at the correct cash balance to be reported on the balance sheet. The bank reconciliation also helps in identifying any cash shortages, thefts, mis-appropriations or frauds.
3. The previous month's reconciliation items such as the deposit of $2000 and the outstanding checks 1219 for $500 and 1218 for $400 are removed from the bank reconciliation for November since they have cleared and are no longer outstanding on November 30. No journal entries are however required for the same since they were already recorded in the books in the previous month.
SILVER HILLS ESTATES Bank Reconciliation November 30, 2017 Cash balance per bank 29914.00 Add: Deposits in transit 2598.00 32512.00 Less: Outstanding checks Check Number Amount 1218 400.00 1228 998.00 1229 330.00 1230 2724.00 4452.00 Adjusted cash balance per bank 28060.00 Cash balance per books 26983.00 Add: EFT rent collected 880.00 Note receivable collected 1430.00 2310.00 29293.00 Less: NSF check 433.00 EFT insurance 275.00 Error in recording check 1227 500.00 Bank service charge 25.00 1233.00 Adjusted cash balance per books 28060.00Related Questions
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