Question

The following information pertains to Novak Corp..

1. Cash balance per bank, July 31, $7,723.

2. July bank service charge not recorded by the depositor $34.

3. Cash balance per books, July 31, $7,744.

4. Deposits in transit, July 31, $1,730.

5. The bank collected $1,146 in July for Novak through electronic funds transfer. The collection has not been recorded by Novak.

6. Outstanding checks, July 31, $597.

Prepare a bank reconciliation at July 31.

Answer 1

Novak Corp.
Bank Reconciliation
Particulars	Amount	Amount
Balance as per Book (A)		$                       7,744
Add:
Outstanding Cheques	$                              597
Direct Deposit in Bank through EFT	$                          1,146
Total of Addition (B)		$                       1,743
Total (C = A + B)		$                       9,487
Less:
Deposit but Not recorded in bank	$                          1,730
Bank charges not taken in the books	$                                34
D = Total of Deuctible		$                       1,764
Balance as per bank Statement (C+D)		$                       7,723