Prepare a bank reconciliation using the above data given

The following data were accumulated for use in reconciling the bank account of creative Design co for August 20Y6

1.Cash Balance according to the company's records at August 31, $27,210

2.Cash Balance according to the bank statement at August 31,$28,330

3.Checks outstanding,$5,520

4.Deposit in transit, not recorded by bank $4,440

5. A check for $340 in payment of an account was erroneously recorded in the check register as $430

6.Bank debit memo for service charges , $50

Req (a). prepare the bank reconciliation statement using the above given data

Solutions

Expert Solution

Bank Reconciliation

August 31,20Y6

Particulars	Amount$
Cash balance according to bank statement	28,330
Add : Deposit in transit on Aug 31	4,440
Less : Oustanding Checks	5,520
Adjusted Balance	27,250
Cash balance according to company's record	27,210
Add : Error in recording check ($430 - 340)	90
Less : Bank Service Charge	50
Adjusted Balance	27,250

Answer to the above question clearly shown in the explanation option

balaji rao answered 2 years ago

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