Question

Question 6.2                                                                           (Total: 15 marks; 5 marks per part)

Emerge Solutions Company deposits all receipts and makes all payments by cheque. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION

Balance per bank	$26,746
Add: Deposits in transit	2,100
Deduct: Outstanding cheques	(3,800)
Balance per books	$25,046

Month of April Results

	Per Bank	Per Books
Balance April 30	$27,995	$27,355
April deposits	11,784	13,889
April cheques	11,100	10,080
April note collected (not included in April deposits)	3,000	0
April bank service charge	35	0
April NSF cheque of a customer returned by the bank (recorded by bank as a charge)	900	0

Required

1.      Calculate the following amounts at April 30:

a.      Deposits in transit

b.      Outstanding cheques

2.      What is the April 30 adjusted cash balance? Show all work.

Answer 1

Answer :-

Required 1 -

a) Deposits in transit on April 30 = Deposit in Transit as per books - ( Deposit in transit as per Bank - Deposit in Transit of March month)

Deposits in Transit on April 30 = $ 13,889 - ( $11,784 - $2,100)

Deposits in transit on April 30 = $4,205

b) Outstanding Checks on April 30 = Outstanding Checks as per books - (Outstanding Checks as per Bank - Outstanding Check of March month)

Outstanding checks on April 30 = $10,080 - ($11,100 - $3,800)

Outstanding Checks on April 30 = $2,780

Required 2 :-

Adjusted cash balance on April 30 are as follows -

Particular	Amount
Balance as per bank	$27,995
Add :- Deposits in transit	$4,205
Less :- Outstanding Checks	($2,780)
Adjusted Cash Balance on April 30	$29,420

If you have any queries please comment I will solve the queries. Please give positive ratings .