a debit balance of $4,000.00.
His bank statement showed a balance of $4,270.00.
On comparison the following were found a check issued amounting
to $2,500.00 has not been cashed
* The bank rejected checks amounting to $140
* Standing order for a best buy order of $700 was note noted..
* A customer paid $170 directly into the bank without any notice to Us
* Bank charges of $160 were entered in the bank statements only.
* A dividend of $250 was paid directly into the bank and not
recorded in the cash
book
* Checks for $1,650.00 were entered into the cash book and
deposited in the bank
but had not been cleared (deposited).
Prepare a bank reconciliation statement for the month .
Suggestion:
Bal. per bank…………………….4270
Outstanding check…………….(2500)
Outstanding deposits…………..1650
Adjusted Bal. per books……….3420
Unadjusted bal. per books…….4000
Rejected checks………………..( 140)
Best Buy order…………………..( 700)
Customer payment……………… 170
Bank charges……………………( 160)
Unrecorded dividend……………..250
Adjusted Bal. per books……….3420
There is some question about the Best Buy order. An order usually has no effect on the bank balance, but apparently the money will be taken out of the bank account when the order is filled. Therefore the money is committed and can't be used.
