Question

The Sandeep Company's April 30 pre-reconciliation cash balance on its books was $35,000. While preparing the April 30 bank reconciliation, Sandeep determined that outstanding checks total $11,000, deposits in transit total $7,000, and bank service charges are $50. Assuming there are no other reconciling items, what was Sandeep's April 30 cash balance per the bank statement

Answer 1

Answer: $38,950

Step-by-step explanation:

The bank balance and the book cash balance might often be different for different reasons, one of which is due to the transactions recorded in the books not having been processed by the banks amongst others.

The books and bank balance will therefore need to be reconciled.

Balance per bank statement = Cash balance in books + Outstanding checks - Deposits in transit - Bank charges

= 35,000 + 11,000 - 7,000 - 50

= $38,950