Question
In: Accounting
Marin Company’s general ledger indicates a cash balance of $22,840 as of September 30, 2021. Early...
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.
Solutions
Expert Solution
| 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 | ||||||
| Please do upvote if you found the answer useful. |
| Feel free reach in the comment section in case of any clarification or queries. |
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