Question

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

Answer 1

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