Question

Prepare a bank reconciliation for March 31, 2012, given the following

A. The bank statement balance is $4,000

B. The cash account balance is $3,000

C. The Outstanding checks total $1,500

D. Deposits in transit are $500

E. The bank service charge is $20

F. Interest reported on the bank statement was $10

G. A check for $10 was recorded as $100 in the ledger

H. A NSF for $80 was returned with the statement. This was not known until it came in the bank statement.

Answer 1

Calculation of Balance per bank

Particulars	Amount$
Balance per bank	4,000
Less : Outstanding checks	1,500
Deposists in transit	500
Adjusted balance per bank	3,000

Calculation of Balance per book

Particulars	Amount$
Balance as per book	3,000
Interest expense	10
Less : Bank Service Charge	20
Book error (100 -10)	90
NSF check	-80
Adjusted Balance per Book	3,000