Bank Reconciliation Statement
Bank Reconciliation Statement
Bank Reconciliation Statement
Example: 1
Company A's bank statement dated Dec 31, 2011 shows a balance of Tk.24,594.72. The company's cash
records on the same date show a balance of Tk.23,196.79. Following additional information is available:
1. Following checks issued by the company to its customers are still outstanding:
No. 846 issued on Nov 29 Tk.320.00
No. 875 issued on Dec 26 49.21
No. 878 issued on Dec 29 275.00
No. 881 issued on Dec 31 186.50
2. A deposit of Tk.400.00 made on Dec 31 does not appear on bank statement.
3. An NSF check of Tk.850 was returned by the bank with the bank statement.
4. The bank charged Tk.50 as service fee.
5. Interest income earned on the company's average cash balance at bank was Tk.1,237.22.
Instruction:
Prepare a bank reconciliation statement using the above information.
Example: 2
On May 31, 2015, Robin Company had a cash balance per books of Tk.13287. The bank
statement from New York State Bank on that date showed a balance of Tk.13332. A comparison
of the details on the bank statement with the details in the cash account revealed the following
facts.
i. The statement included a debit memo of Tk.35 for the printing of additional company
checks.
ii. Cash sales of Tk.1,720 on May 12 were deposited in the bank. The cash receipts journal
entry and the deposit slip were incorrectly made for Tk.1,820. The bank credited Robin
Company for the correct amount.
iii. Outstanding checks at May 31 totaled Tk.1,225, and deposits in transit were Tk.2,100.
iv. On May 18, the company issued check no. 1181 for Tk.911 to J. Greenberg on account.
The check, which cleared the bank in May, was incorrectly journalized and posted by
Robin Company for Tk.119.
v. A Tk.4,000 note receivable was collected by the bank for Robin Company on May 31
plus Tk.80 interest. The bank charged a collection fee of Tk.25. No interest has been
accrued on the note.
vi. Included with the cancelled checks was a check issued by Powers Company to Jerry Saltz
for Tk.900 that was incorrectly charged to Robin Company by the bank.
vii. On May 31, the bank statement showed an NSF charge of Tk.1,308 for a check issued by
Simon de Pury, a customer, to Robin Company on account.
Instructions
Prepare the bank reconciliation at May 31, 2015.
Example: 3
Instructions
(a) Prepare a bank reconciliation at July 31.
Example: 4
The information below relates to the Cash account in the ledger of Porter Company.
Balance September 1—Tk.17,150; Cash deposited—Tk.64,000.
Balance September 30—Tk.17,404; Checks written—Tk.63,746.
The September bank statement shows a balance of Tk.16,422 on September 30 and the following
memoranda.
Credits
Collection of Tk.1,500 note plus interest Tk.30 -Tk.1,530
Interest earned on checking account Tk.45
Debits
NSF check: Charles Esten Tk.425
Safety deposit box rent Tk.65
At September 30, deposits in transit were Tk.4,450, and outstanding checks totaled Tk.2,383.
Instructions
(a) Prepare the bank reconciliation at September 30.