Can someone show me this bank reconciliation?
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 ______________________
Balance per cash book
Was this job legit?!? Just wondering I don't wanna waste my time if it's not.
To prepare a bank reconciliation statement, you need to compare the balance shown in the cash book with the balance shown on the bank statement and account for any discrepancies. Here's how you can calculate each item:
1. Start with the balance per the bank statement, which is $4,270.00.
2. Add any uncredited checks: In this case, there is one uncredited check amounting to $2,500.00. So, add $2,500.00 to the balance per the bank statement. The new balance becomes $6,770.00.
3. Add the amount of the standing order: The standing order for a staples order is $700. Since it was not noted in the bank statement, add $700 to the balance. The new balance becomes $7,470.00.
4. Add any bank charges: The bank charges of $160 were entered in the bank statements only. So, add $160 to the balance. The new balance becomes $7,630.00.
5. Subtract any dishonored checks: The bank rejected checks amounting to $140. Subtract $140 from the balance. The new balance becomes $7,490.00.
6. Subtract any unpresented checks: The checks for $1,650.00 were entered into the cash book and deposited in the bank but had not been cleared. Therefore, subtract $1,650.00 from the balance. The new balance becomes $5,840.00.
7. Subtract any dividends: A dividend of $250 was paid directly into the bank and not recorded in the cash book. Subtract $250 from the balance. The final balance per the cash book becomes $5,590.00.
So, the bank reconciliation statement for the month would show:
Balance per bank statement: $4,270.00
(Add)
Uncredited checks: $2,500.00
Standing order: $700.00
Bank charges: $160.00
Dishonored checks: $140.00
(Equals)
Adjusted balance per bank statement: $7,770.00
(Less)
Unpresented checks: $1,650.00
Dividend: $250.00
Credit transfer: $0.00
(Equals)
Balance per cash book: $5,590.00