Need help with this bank reconciliation...this is actually for a job and I am forgetting everything about accounting because I am nervous.
BANK RECONCILATION
==============================================
On Aug 14th, One of our Partner's ( Compuville ) cash book showed a debit
balance of $4,000.00.
His bank statement showed a balance of $4,270.00.
On comparison the following were found:
* check issued amounting to $2,500.00 has not been cashed
* The bank rejected checks amounting to $140
* Standing order for a staples 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 .
balance per bank statement
$ $
(Add )
uncredited
checks
standing order
bank charges
dishonored
checks
_____________________
(Less)
unpresented checks
dividend
credit
transfer
Bank Stmt Balance $4270.00
Add
Rejected Checks 140.00
Deposited Checks 1650.00
Ending Balance $6060.00
Book Balance $4000.00
Add
Checks Issued 2500.00
Cust Pd Direct 170.00
Dividend 250.00
Deduct
Staples Order -700.00
Bank Charges -160.00
Ending Balance $6060.00
To prepare a bank reconciliation statement, follow these steps:
Step 1: List the items that need to be added to the bank statement balance (balance per bank statement):
- Uncredited checks: In this case, a check issued for $2,500 has not been cashed. Add $2,500 to the balance per bank statement.
- Standing order: A standing order for a staples order of $700 was not noted. Add $700 to the balance per bank statement.
- Bank charges: Bank charges of $160 were entered in the bank statements only. Add $160 to the balance per bank statement.
Step 2: List the items that need to be subtracted from the bank statement balance:
- Dishonored checks: The bank rejected checks amounting to $140. Subtract $140 from the balance per bank statement.
Step 3: List the items that need to be added to the cash book balance:
- Customer payment: A customer paid $170 directly into the bank without any notice to us. Add $170 to the cash book balance.
Step 4: List the items that need to be subtracted from the cash book balance:
- Unpresented checks: Checks for $1,650 were entered into the cash book and deposited in the bank but had not been cleared (deposited). Subtract $1,650 from the cash book balance.
- Dividend credit transfer: A dividend of $250 was paid directly into the bank and not recorded in the cash book. Subtract $250 from the cash book balance.
Now, you can calculate the final balance by adding the additions and subtracting the deductions:
Balance per bank statement + Additions - Deductions = Balance per cash book
Let's do the calculations:
Balance per bank statement: $4,270.00
Additions:
- Uncredited checks: $2,500.00
- Standing order: $700.00
- Bank charges: $160.00
Deductions:
- Dishonored checks: $140.00
Balance per cash book: $4,270 + $2,500 + $700 + $160 - $140 = ?
Once you perform this calculation, you will have the balance per cash book and have completed the bank reconciliation statement for the month.