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 .

Sure, let's prepare a bank reconciliation statement for the given scenario:

Partner's Cash Book Balance: $4,000.00
Bank Statement Balance: $4,270.00

1. Checks issued but not cashed: $2,500.00
2. Bank rejected checks: $140.00 (deduct this)
3. Standing order for staples order: $700.00 (add this)
4. Customer deposit not notified: $170.00 (add this)
5. Bank charges: $160.00 (deduct this)
6. Dividend paid directly into the bank: $250.00 (add this)
7. Checks deposited but not cleared: $1,650.00 (deduct this)

Now let's calculate the adjusted balances:

Cash Book Balance:
$4,000.00 (original balance)
+ $700.00 (standing order)
+ $170.00 (customer deposit)
+ $250.00 (dividend)
= $5,120.00

Bank Statement Balance:
$4,270.00 (original balance)
- $140.00 (rejected checks)
- $160.00 (bank charges)
- $1,650.00 (uncleared checks)
= $2,320.00

Bank Reconciliation Statement:

Cash balance per Cash Book: $5,120.00
Adjusted Bank balance: $2,320.00

Add:
* Outstanding deposits: None

Less:
* Outstanding checks: $1,650.00

Adjusted cash balance per Cash Book: $3,470.00
Adjusted cash balance per Bank Statement: $2,320.00

So, after reconciling, the adjusted cash balance per the Cash Book is $3,470.00, and the adjusted cash balance per the Bank Statement is $2,320.00.

To prepare a bank reconciliation statement, we need to compare the cash book balance with the bank statement balance and make adjustments for any discrepancies.

Step 1: Start with the cash book balance
Cash book debit balance: $4,000.00

Step 2: Add or subtract any outstanding checks
Outstanding checks: $2,500.00
Cash book balance after adding outstanding checks: $6,500.00

Step 3: Deduct any rejected checks
Rejected checks: $140.00
Cash book balance after deducting rejected checks: $6,360.00

Step 4: Deduct any standing orders not noted
Standing order for staples: $700.00
Cash book balance after deducting standing order: $5,660.00

Step 5: Add any customer deposits not recorded
Customer deposit: $170.00
Cash book balance after adding customer deposit: $5,830.00

Step 6: Deduct any bank charges only shown in the bank statement
Bank charges: $160.00
Cash book balance after deducting bank charges: $5,670.00

Step 7: Add any dividends paid directly into the bank and not recorded in the cash book
Dividend: $250.00
Cash book balance after adding dividend: $5,920.00

Step 8: Deduct any checks entered in the cash book but not yet cleared
Uncleared checks: $1,650.00
Cash book balance after deducting uncleared checks: $4,270.00

Step 9: Compare cash book balance with bank statement balance
Cash book balance: $4,270.00
Bank statement balance: $4,270.00

Step 10: Prepare the bank reconciliation statement
The cash book balance matches the bank statement balance, so no adjustments are needed.

Bank Reconciliation Statement for the month:

Cash book balance: $4,270.00
Bank statement balance: $4,270.00

To prepare a bank reconciliation statement, you need to compare the cash book balance with the bank statement balance and account for any discrepancies. Here are the steps to prepare the bank reconciliation statement for the given scenario:

1. Start by listing the figures from the cash book and the bank statement separately:

Cash Book Balance: $4,000.00 (debit)
Bank Statement Balance: $4,270.00 (credit)

2. Identify and reconcile the items that have not been accounted for in either the cash book or the bank statement:

a. Check issued amounting to $2,500.00 has not been cashed.
Deduct $2,500.00 from the cash book balance and leave it unchanged in the bank statement balance.

b. The bank rejected checks amounting to $140.
Deduct $140.00 from the cash book balance and leave it unchanged in the bank statement balance.

c. Standing order for a staples order of $700 was not noted.
Deduct $700.00 from the cash book balance and leave it unchanged in the bank statement balance.

d. A customer paid $170 directly into the bank without any notice to us.
Add $170.00 to the cash book balance and leave it unchanged in the bank statement balance.

e. Bank charges of $160 were entered in the bank statements only.
Deduct $160.00 from the bank statement balance and leave it unchanged in the cash book balance.

f. A dividend of $250 was paid directly into the bank and not recorded in the cash book.
Add $250.00 to the cash book balance and leave it unchanged in the bank statement balance.

g. Checks for $1,650.00 were entered into the cash book and deposited in the bank but had not been cleared (deposited).
Deduct $1,650.00 from the cash book balance and leave it unchanged in the bank statement balance.

3. Adjust the cash book and bank statement balances based on the reconciled items:

Cash Book Balance: $4,000.00 - $2,500.00 - $140.00 - $700.00 + $170.00 + $250.00 - $1,650.00 = $-570.00 (debit)
Bank Statement Balance: $4,270.00 - $160.00 = $4,110.00 (credit)

4. Finally, compare the adjusted cash book balance and the bank statement balance:

Adjusted Cash Book Balance: $-570.00 (debit)
Adjusted Bank Statement Balance: $4,110.00 (credit)

The bank reconciliation statement for the month would show a difference of $-570.00 (debit) between the cash book balance and the bank statement balance.