Question

Brett White operates a roller skating? center, Roll AroundRoll Around USA. He has just received the monthly bank statement at MayMay

31

from??

RidgewayRidgeway

National? Bank, and the statement shows an ending balance of

$ 725$725.

Listed on the statement are an EFT rent collection of

$ 315$315?,

a service charge of

$ 8$8?,

two NSF checks totaling

$ 95$95?,

and

aa

$ 9$9

charge for printed checks. In reviewing his cash? records,

WhiteWhite

identifies outstanding checks totaling

$ 611$611

and

a Maya May

3131

deposit in transit of

$ 1 comma 805$1,805.

During

MayMay?,

he recorded a

$ 310$310

check for the salary of a? part-time employee as

$ 31$31.

White'sWhite's

Cash account shows

a Maya May

3131

balance of

$ 1 comma 995$1,995.

Requirement

1. How much cash does

WhiteWhite

actually have at

May 31May 31?,

20162016??

Answer 1

Solution :

Bank Reconciliation - May 31
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$725.00	Ending Balance as per cash books	$1,995.00
Additions:		Additions:
Outstanding cash receipt	$1,805.00	EFT Rent Collection	$315.00
Deductions:		Deductions:
Outstanding Checks	$611.00	NSF Cheque	$95.00
		Printing check charges	$9.00
		Service Charge	$8.00
		Incorrect recording of salary check ($310 - $31)	$279.00
True cash balance as per bank	$1,919.00	True cash balance as per books	$1,919.00

Cash balance white actually have on may 31, 2016 = $1,919