Question

On July 31, 2022, Cullumber Company had a cash balance per books of $6,250.00. The statement from Dakota State Bank on that date showed a balance of $7,800.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $20.00.
2.		The bank collected $1,630.00 from a customer for Cullumber Company through electronic funds transfer.
3.		The July 31 receipts of $1,308.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.		Company check No. 2480 issued to L. Taylor, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $349.00.
5.		Checks outstanding on July 31 totaled $1,979.10.
6.		On July 31, the bank statement showed an NSF charge of $685.00 for a check received by the company from W. Krueger, a customer, on account.

Answer 1

Particulars	Amount ($)
Cash balance as per bank statement	7800.8
Add:Deposits in transit	1308.3
	9109.1
Less:Outstanding Checks	-1979.1
Adjusted cash balance as per bank	7130
Cash balance as per books	6250
Add:Electronic fund transfer received	1630
	7880
Less:Bank service charge	-20
Less: NSF Check	-685
Less: Error in check amount	-45
Adjusted cash balance per books	7130