Question

Bank reconciliation Prepare a bank reconciliation as of October 31 from the following information:

a.

The October 31 cash balance in the general ledger is $1,688.

b.

The October 31 balance shown on the bank statement is $746.

c.

Checks issued but not returned with the bank statement were No. 462 for $26 and No. 483 for $100.

d.

A deposit made late on October 31 for $900 is included in the general ledger balance but not in the bank statement balance.

e.

Returned with the bank statement was a notice that a customer’s check for $150 that was deposited on October 25 had been returned because the customer’s account was overdrawn.

f.

During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $64 but that in the company’s records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $46.

Answer 1

Bank Reconciliation
As at October 31
Cash Balance as per bank statement		$     746
Add: Deposit in transit		$     900
		$ 1,646
Less:
Outstanding checks ($26+$100)		$     126
Adjusted Cash balance per bank		$ 1,520
Cash balance per books		$ 1,688
Less:
Error in recording of cheque #471 ($64-$46)	$    18
NSF Check	$ 150
		$     168
Adjusted Cash balance per books		$ 1,520

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