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
______________________
Balance per cash
book
__________



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To prepare a bank reconciliation statement, we need to compare the cash balance as per the bank statement with the cash balance as per the cash book.

Here are the steps to prepare the bank reconciliation statement:

Step 1: Start with the balance as per the bank statement. In this case, the balance is $4,270.00.

Step 2: Add any uncredited checks that were issued but not yet cleared by the bank. In this case, there is one uncredited check amounting to $2,500.00. So, we add $2,500.00 to the balance.

Step 3: Add any standing orders or automatic payments that are deducted from the bank account but not recorded in the cash book. In this case, there is a standing order for a staples order of $700, which was not noted in the cash book. So, we add $700 to the balance.

Step 4: Add any bank charges that are recorded in the bank statement but not in the cash book. In this case, bank charges of $160 were entered in the bank statement only. So, we add $160 to the balance.

Step 5: Subtract any dishonored checks that were rejected by the bank. In this case, the bank rejected checks totaling $140. So, we subtract $140 from the balance.

Step 6: The result will give us the adjusted balance as per the bank statement.

Next, we need to compare this adjusted balance with the cash balance as per the cash book.

Step 7: Start with the balance as per the cash book. In this case, the balance is $4,000.00.

Step 8: Subtract any unpresented checks that were recorded in the cash book but not yet presented to the bank. In this case, there are checks totaling $1,650.00 that were entered into the cash book but not yet cleared. So, we subtract $1,650.00 from the balance.

Step 9: Subtract any dividend credit transfers that were paid directly into the bank account but not recorded in the cash book. In this case, a dividend of $250 was paid directly into the bank. So, we subtract $250 from the balance.

Step 10: The result will give us the adjusted balance as per the cash book.

Now, we can summarize the bank reconciliation statement:

Balance per bank statement: $4,270.00
(Add) Uncredited checks: $2,500.00
(Add) Standing order: $700.00
(Add) Bank charges: $160.00
(Less) Dishonored checks: $140.00
_____________________
Adjusted balance per bank statement: $7,490.00

Balance per cash book: $4,000.00
(Less) Unpresented checks: $1,650.00
(Less) Dividend credit transfer: $250.00
______________________
Adjusted balance per cash book: $2,100.00

The bank reconciliation statement shows that there is a difference between the balance as per the bank statement and the balance as per the cash book. The difference is $7,490.00 - $2,100.00 = $5,390.00.

To finalize the bank reconciliation, further investigation is needed to identify the reasons for the difference and make the necessary adjustments in the cash book or bank statement to bring the balances in line.

To prepare a bank reconciliation statement, we need to compare the cash book balance with the bank statement balance and reconcile the differences.

First, we start with the balance as per the bank statement:

Balance per bank statement: $4,270.00

Next, we list the items that need to be added to the bank statement balance:

1. Uncredited checks: $2,500.00 (check issued but not cashed)
2. Standing order for a staples order: $700.00 (not noted in the bank statement)
3. Bank charges: $160.00 (entered in the bank statement only)

Total additions: $2,500.00 + $700.00 + $160.00 = $3,360.00

We add the total additions to the balance per bank statement:

$4,270.00 + $3,360.00 = $7,630.00

Now, we list the items that need to be deducted from the bank statement balance:

1. Dishonored checks: $140.00 (rejected by the bank)
2. Dividend credit transfer: $250.00 (paid directly into the bank and not recorded in the cash book)

Total deductions: $140.00 + $250.00 = $390.00

We deduct the total deductions from the balance per bank statement:

$7,630.00 - $390.00 = $7,240.00

The resulting amount is the adjusted balance per the cash book:

Balance per cash book: $7,240.00

So, the bank reconciliation statement for the month would look like this:

Balance per bank statement: $4,270.00
Add:
- Uncredited checks: $2,500.00
- Standing order: $700.00
- Bank charges: $160.00
Total additions: $3,360.00

Adjusted balance per bank statement: $7,630.00
Less:
- Dishonored checks: $140.00
- Dividend credit transfer: $250.00
Total deductions: $390.00

Balance per cash book: $7,240.00