Question

The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation.

	Date	Information
1	Aug 31	Bank statement balance $3,490
2	Aug 31	Bank statement reflects bank fees for the month $35
3	Aug 28	NSF cheque $100 with fee of $10.
4	Aug 27	Bank statement reflects paper statement fee $80
5	Aug 31	Bank statement reflects interest earned on balance $8
6	Aug 31	$1,000 note receivable collected by bank and deposited into XYZ's account. Related bank fee is $40.
7	Aug 1	31 XYZ wrote cheques with total value over $60,000. As of Aug 31 $3,021 of the cheques written have not cleared the bank. Also, $200 cheques written back in June have still not cleared the bank.
8	Aug 31	Deposits in transit $1,450
9	Aug 31	The GL reflects cash sales of $145. The bank statement reflects deposits related to these sales of $154. XYZ incorrectly recorded $145.
10	Aug 31	General ledger cash account reflects $967

What is the total amount deducted from the G/L balance to arrive at the Adjusted Balance per Books for August?

$225

$0

$977

$115

$215

Answer 1

Bank Reconciliation statement

As per Bank	Amount	As per General Ledger	Amount
Opening Balance	3490	Opening Balance	967
Uncleared Checks	-3221	Bank Fees	-35
Deposits in transit	1450	NSF Check with fees	-110
		Paper statement fee	-80
		Interest Earned	8
		Note Receivable	960
		sales incorrectly recorded	9
Adjusted Balance as per bank	1719	Adjusted Balance as per books	1719

Thus total amount deducted from the G/L balance to arrive at the Adjusted Balance per Books for August is

= 35 + 110 + 80 = 225

Kindly Up Vote