3. When is the voucher inliaily 8-8 iliation and tries Not Shown on the Reconcil

Question

3. When is the voucher inliaily 8-8 iliation and tries Not Shown on the Reconciliation pre a table with the following headings for a monthly bank Book Balance Adjust Bank Balance Add Add Deduct should be ur each item 1 through 12, heducted from the book or bank balance, or whether it should not appear on the reconc em I through 12, place an x in the appropriate column to indicate whether the item n to indicate whether the Cash the items to correspond to the If the book balance is to be adjusted, pla rollane should be debited or credited. At the left side of your table, number the items to correspond to following list. 1. NSF check from customer is returned on September 25 but not yet recorded by this company Interest earned on the September cash balance in the bank. . Deposit made on September S and processed by the bank on September 6. 4. Ch ecks written by another depositor but charged against this company's account. 5. Bank service charge for September 6. Che cks outstanding on August 31 that cleared the bank in September. k written against the company's account and cleared by the bank erroneously not recorded bu 7. Chec the company's recordkeeper 8. Principal and interest on a note receivable to this company is collected by the bank but not yet re corded by the company on October 2. 10. Checks written by the company and mailed to payees on September 30. 11. Night deposit made on September 30 after the bank closed. 12. Special bank charge for collection of note in part 8 on this company's behalf

Explanation / Answer

Bank Balance Book Balance Sr No Add Deduct Add Deduct Adjust Not shown on Reconciliation Remarks 1 x check deposited, now returnrd will decrease the book baalnce when recorded. 2 x Interest earned in bank not recorded will increase the book balance. 3 x Entry is cleared in bank and book both, hence not a reconciliing item. 4 x This is not to be recorded in books as the error is done by bank. Bank balance will be increased by this amount when rectified. 5 x Bank service charge not accounted will decrease the book balances. 6 x AS the check has cleared in bank, it will no longer be part of reconcliation. 7 Cr This is an error in recording and book balances should be adjusted by this amount. 8 x This is a collection recd in bank, book balances will increase by this amount. 9 x This is outside current reconciliation period. 10 x The bank balance will decrease when cleared. 11 x This will increase the bank balances when cleared. 12 x Bank service charge not accounted will decrease the book balances.

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