Question

The following information pertains to Ghose Company. 1. Cash balance per bank, July 31, $8,569. 2. July bank service charge not recorded by the depositor $62. 3. Cash balance per books, July 31, $8,605. 4. Deposits in transit, July 31, $3,941. 5. Note for $3,241 collected for Ghose in July by the bank, plus interest $60 less fee $44. The collection has not been recorded by Ghose, and no interest has been accrued. 6. Outstanding checks, July 31, $710.

Answer 1

This is a Bank Reconciliation problem
Bank reconciliation statement of Ghose Company as at 31 July
Particulars	$	Notes for understanding
Cash Balance as per Bank	8569	We can also start the problem from Cash balance as per bank the answer will remain same
Add:-
Deposit in transit	3941	The deposit in transit measn the company has recorded the same in its books but the same has not yet been recorded by the bank as the same is in transit so we need to add the same in balance as per bank to arrive the balance as per Books
Outstanding checks	-710	The outstanding checks need to be deducted as the same has been deducted in the books and sent to bank for payment which are still be processd by the bank means the bank has not deducted the same in its accounts therefore we need to deduct the same from balance from bank to arrive the balance from books
July bank charges not recorded by the depositors	62.30	The July bank charges has been deducted by the bank and same is not deducted by the Ghose company therefore we need to add back the same in bank balance as same is not deducted in balance as per books to arrive the balance as per books
Less:-
The collection not recorded by Ghose	(3,257)	The bank recorded the collected which the ghose company has not recorded therefore we need to deduct the collection from the balance as per bank to arrive the balance as per books
Cash Balance as per Books	8,605
Note:- If you start from balance as per books then the all the added item you needs to deduct and all the deducted items you need to add back to arrive the balance as per bank