Question

The balance in Happ, Inc.’s general ledger Cash account was $13,200 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $11,830. Reconciling items included deposits in transit, $1,270; bank service charges, $105; NSF check written by a customer and returned with the bank statement, $520; outstanding checks, $450; and interest credited to the account during September but not recorded on the company’s books, $75.

Required:

Prepare a bank reconciliation as of September 30 for Happ, Inc.

Answer 1

Solution:

Happ Inc.
Bank Reconciliation - September 30
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$11,830.00	Ending Balance as per cash books	$13,200.00
Additions:		Additions:
Deposit in transit	$1,270.00	Interest credited by bank	$75.00
Deductions:		Deductions:
Outstanding Checks	$450.00	NSF Cheque	$520.00
		Bank Service Charge	$105.00
Up to date cash balance as per bank	$12,650.00	Up to date cash balance as per books	$12,650.00