Question

Marin Company’s general ledger indicates a cash balance of $22,840 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $2,000 returned to a customer and incurred service charges of $70. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $900 when in fact the check was for $990.

Calculate Marin’s correct September 30, 2021, cash balance.Marin Company’s general ledger indicates a cash balance of $22,840 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $2,000 returned to a customer and incurred service charges of $70. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $900 when in fact the check was for $990.

Calculate Marin’s correct September 30, 2021, cash balance.

Answer 1

a)	Preparation of Bank reconciliation statement for 30th Sept, 2021	b) Whether Journel entry required be passed	Debit	Credit
Particulars	Amount $	Amount $
	Balance as per Company's Cash Ledger	$    22,840		Yes	Account receivable	$ 2,070.00
Less:	NSF cheque returned to the cutomer	$    (2,000)			Cash		$ 2,070.00
Less:	Service charges on NSF cheque returned to the cutomer	$          (70)			(To record NSF cheque returned)
Add:	Incorrect recording of cheque received(990-900)	$            90
	Correct Cash balance on 30th Sept	$    20,860

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