Answer:
To reconcile the bank statement balance with the ledger balance, we need to account for the various transactions and adjustments. Let's go through each item step by step:
Starting with the ledger balance:
ABC's ledger balance on July 31: Br. 4,173.83
Deposit made after banking hours:
Deposit: Br. 410.90
Adjust the ledger balance:
Ledger balance: Br. 4,173.83 + Br. 410.90 = Br. 4,584.73
Erroneously charged check:
Erroneous charge by the bank: Br. 973.00
Adjust the ledger balance:
Ledger balance: Br. 4,584.73 - Br. 973.00 = Br. 3,611.73
Outstanding checks:
Check No. 801: Br. 100.00
Check No. 888: Br. 10.25
Check No. 890: Br. 294.50
Check No. 891: Br. 205.00
Adjust the ledger balance:
Ledger balance: Br. 3,611.73 - (Br. 100.00 + Br. 10.25 + Br. 294.50 + Br. 205.00) = Br. 3,002.98
Incorrectly charged check:
Incorrect charge by the bank: Br. 120.00 instead of Br. 210.00
Adjust the ledger balance:
Ledger balance: Br. 3,002.98 + (Br. 210.00 - Br. 120.00) = Br. 3,092.98
Proceeds from collection of the interest-bearing note receivable:
Proceeds: Br. 500.00
Adjust the ledger balance:
Ledger balance: Br. 3,092.98 + Br. 500.00 = Br. 3,592.98
Interest earned on average account balance:
Interest earned: Br. 24.75
Adjust the ledger balance:
Ledger balance: Br. 3,592.98 + Br. 24.75 = Br. 3,617.73
Check returned for incorrect amount:
Returned check: Br. 100.00 instead of Br. 10.00
Adjust the ledger balance:
Ledger balance: Br. 3,617.73 - (Br. 100.00 - Br. 10.00) = Br. 3,527.73
Bank fee for handling note collection:
Bank fee: Br. 5.00
Adjust the ledger balance:
Ledger balance: Br. 3,527.73 - Br. 5.00 = Br. 3,522.73
Check from customer charged as NSF:
Check from John: Br. 50.25
Adjust the ledger balance:
Ledger balance: Br. 3,522.73 - Br. 50.25 = Br. 3,472.48
Bank service charge:
Service charge: Br. 12.70
Adjust the ledger balance:
Ledger balance: Br. 3,472.48 - Br. 12.70 = Br. 3,459.78
Erroneously recorded check:
Check No. 875: Br. 58.00 instead of Br. 85.00
Adjust the ledger balance:
Ledger balance: Br. 3,459.78 + (Br. 85.00 - Br. 58.00) = Br. 3,486.78
After considering all the adjustments and transactions, the reconciled ledger balance is Br. 3,486.78.
Therefore, the reconciled ledger balance on July 31 is Br. 3,486.78.
Explanation: