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 not 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 .
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 not 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 .
To prepare a bank reconciliation statement, you need to compare the transactions recorded in the cash book with the transactions recorded on the bank statement. Here's how you can go about it step by step:
1. Start with the cash book balance: $4,000.00 (debit balance).
2. Add any outstanding deposits not yet credited by the bank:
- Checks for $1,650.00 were entered in the cash book and deposited in the bank but had not been cleared. This means you need to add $1,650.00 to the cash book balance.
Cash book balance after adding outstanding deposits: $5,650.00
3. Deduct any outstanding checks not yet cleared by the bank:
- Check issued for $2,500.00 has not been cashed yet. This means you need to deduct $2,500.00 from the cash book balance.
Cash book balance after deducting outstanding checks: $3,150.00
4. Consider any bank charges or fees not yet recorded in the cash book:
- Bank charges of $160 were entered in the bank statement only. This means you need to deduct $160.00 from the bank statement balance.
Bank statement balance after deducting bank charges: $4,110.00
5. Add any deposits or credits not recorded in the cash book:
- A customer paid $170 directly into the bank without any notice to us. This means you need to add $170.00 to the bank statement balance.
Bank statement balance after adding unrecorded deposit: $4,280.00
6. Deduct any payments or checks issued not recorded in the cash book:
- The bank rejected checks amounting to $140. This means you need to deduct $140.00 from the bank statement balance.
- A dividend of $250 was paid directly into the bank and not recorded in the cash book. This means you need to deduct $250.00 from the bank statement balance.
Bank statement balance after deducting unrecorded payments: $3,890.00
7. Deduct any standing orders or automatic payments not noted in the cash book:
- A standing order for a Staples order of $700 was not noted. This means you need to deduct $700.00 from the bank statement balance.
Bank statement balance after deducting unrecorded standing order: $3,190.00
8. Finally, compare the adjusted cash book balance with the adjusted bank statement balance:
Cash book balance: $3,150.00
Bank statement balance: $3,190.00
The difference between the two is $40.00, indicating that there is still an unresolved discrepancy between the cash book and bank statement balances.
Please note that the final step of resolving the discrepancy would require further investigation of the transactions and potentially reconciling the differences between the records.