Question

Here is the information collected at Créations Plus as of March 31, 2020:

1. The balances of the Cash on the books account and the bank account on the bank statement are respectively $ 15,031.14 and $ 17,867.33 as at March 31, 2020.

2. An examination of the digitization of checks by the bank revealed a recording accounting error. In fact, check no. 618 issued in the amount of $ 317 on March 12 was instead recorded in the disbursement journal at $ 371.

3. A credit note attached to the bank statement indicates that the bank has received a bill receivable of $ 3,690 from a client of Créations Plus. The effect bore interest and the bank credited the proceeds of the receivable and interest of $ 55.35 to the Créations Plus account.

4. A debit note for the monthly bank charges appears on the bank statement for an amount of $ 9.95.

5. Debit notes were also attached to the March bank statement sent to the company. In fact, a long-time client used the wrong check book and therefore issued an NSF check in the amount of $ 423, which caused the company to pay insufficient administrative fees of $ 45.

6. As of March 31, 4 checks were still in circulation; or checks no 630 ($ 528.59), no 635 ($ 129.36), no 637 ($ 834.23) and no 640 ($ 621.14).

7. Créations Plus made an overnight deposit at the counter for receipts of March 31 in the amount of $ 2,543.18. This amount does not appear on the bank statement.

WORK TO DO

Perform the bank reconciliation of March 2020, illustrating the side of the bank and that of the accounting books.

Answer 1

BANK RECONCILIATION STATEMENT

PARTICULARS	AMOUNT ($)	AMOUNT ($)
BALANCE ACCORDING TO CASH BOOK		.15031.14
ADD : incorrectly recorded in place of 317	371
bills receivable paid in bank	3690
interest paid in bank	55.35
checks still in circulation ( 528.59 + 129.36 + 834.23 + 621.14)	2113.32
		6174.32
LESS : rectifying the amount incorrectly recorded	(317 )
bank charges deducted from bank accounts	( 9.95 )
nsf check	( 423 )
administrative fees	( 45 )
deposited in bank	( 2543.18)	( 3338.13)
BALANCE AS PER BANK ACCOUNT		17867.33