Question

This information relates to the Cash account in the ledger of Oriole Company.

Balance September 1—$17,380; Cash deposited—$64,000
Balance September 30—$18,580; Checks written—$62,800
The September bank statement shows a balance of $17,480 at September 30 and the following memoranda.
Credits Debits
Collection from customer of electronic funds transfer $2,110 NSF check: H. Kane $840
Interest earned on checking account 70 Safety deposit box rent 85
At September 30, deposits in transit were $5,043 and outstanding checks totaled $2,688.
Prepare the bank reconciliation at September 30, 2017.

Answer 1

Bank Reconciliation Statement

Balance at bank as per Cash Book (up to date) $21,515

Add Unpresented Cheques $2,688

Less Bank Lodgements not yet credited ($5,043)

Balance as per Bank Statement $19,160

Step-by-step explanation:

First Bring the Cash Book Bank Balance up to date as follows :

Debits :

Balance as at September 30 $18,580

Collection- Electronic Funds NSF $2,110

H.Kane $840

Interest earned $70

Totals $21,600

Credits:

Safety deposit box rent $85

Balance (Up to date) $21,515

Totals $21,600

The Prepare a Bank Reconciliation Statement as follows :

Bank Reconciliation Statement

Balance at bank as per Cash Book (up to date) $21,515

Add Unpresented Cheques $2,688

Less Bank Lodgements not yet credited ($5,043)

Balance as per Bank Statement $19,160