Question

John Snow’s chequebook lists the following:

Date		Cheque #	Item	Cheque	Deposit	Balance
Nov	1					$505
	4	622	Horizon Utility	$39		466
	9		Dividends		$116	582
	13	623	Canadian Tire	43		539
	14	624	Petro-Canada	58		481
	18	625	Cash	50		431
	26	626	Faith of the Seven Church	25		406
	28	627	Affordable Housing	275		131
	30		Paycheque		746	877

The November bank statement shows:

Balance	$505
Add deposits	116
Deduct cheques	Amount 622               $39 623                43 624                85 625                50
Other charges:
NSF cheque	$8
Service charge	12
Balance	$384

1. Prepare John Snow’s bank reconciliation at November 30th.

Answer 1

Bank Reconciliation - John Snow
November
Particulars	Amount ($)
Balance as per bank statement	$384
Add: Deposit in transit, not recorded by bank	$746
Less: Outstanding cheque:
Cheque 627	-$275
Cheque 626	-$25
Total outstanding cheques	-$300
Bank Error - Cheque 624 ($85 - $58)	$27
Adjusted balance as per company's records	$857
Balance according to the company's records	$877
Less: NSF Charges	-$8
Less : Service charges charged by bank	-$12
Corrected amount to be recorded in company's records	$857