12) Prepare a March Bank Reconciliation based on the following: Our Cash ledger
ID: 2556227 • Letter: 1
Question
12) Prepare a March Bank Reconciliation based on the following: Our Cash ledger account shows a balance of $9,000. The March 31 bank statement shows a balance of $12,000. Interest Revenue earned $100. Deposits in Transit total $2,000. Outstanding checks total $12,000. NSF check from a customer $6000. Bank service charge $300. EFT payments to vendors $3,100. Our accountant forgot to journalize a $2,300 deposit. Unreconciled Bank Balance Add Unreconciled Book Balance Add Subtract: Subtract: Reconciled Book Balance Reconciled Bank BalanceExplanation / Answer
* The entries which were not recorded/erroneously recorded in books of account have been given effect to in bank statement balance and vice versa
This is how balances are reconciled.
* Checks outstanding $12000 do not have any effect on balance of bank or books of accounts , thus they have been ignored while preparing reconciliation statement.
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Unreconciled bank balance $12000 Unreconciled Book balance $9000 Add: Add: Deposits in transit 2000 interest revenue earned 100 Bank service charges 300 NSF check from customer 6000 EFT payments 3100 deposit omitted 2300 Subtract: Subtract: Interest Revenue earned 100 Deposits in transit 2000 NSF check from customer 6000 bank service charges 300 Deposit omitted 2300 EFT payment 3100 Reconciled Bank balance 9000 Reconciled Book balance 12000Related Questions
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