Bank Reconciliation Statement

Bank Reconciliation Statement questions,Financial Accounting I

Question 1:

a)The balance on the March 31,2010 ,bank statement is rs. 6506.10.

b)Not included on the bank statement is a rs.423 deposit made by Karen’s late on March 31.

c)A comparison between the cancelled checks listed on the bank statement and the company records indicated that the following checks are outstanding at march 31: No.112               rs. 42.92 No.117               rs. 307.00 N0.120               rs. 10.58 No.122               rs. 75.67

d)The bank acts as an collection agency for check returned for insufficient funds.The march bank statement indicates that one such check amount of rs. 45.00 was collected and deposited and a collection fee of rs. 4.50 was charged

e)Interest earned on the checking account and added to Karen’s account during March was rs.4.30.Miscallaneous bank service charges amounted to rs.22.

f)A comparison between the deposits listed in the bank statement and the company’s books revealed that a customer’s check in the amount of rs. 1250 appears on the bank statement in March but never added to the customer’s account on the company’s books.

g)The comparison of checks cleared per bank statement with those per books revealed that the wrong amount was charged to company’s account for a check. The amount of check was rs.990 .The proof machine encoded the check in the amount of rs. 909,the amount charged against the company’s account.  

Ans)                                                                       Karen’s Catering                                                                   

                                                                        Bank Reconciliation Statement                                                                                                                                                    March 31, 2012          

Balance as per bank statement                         6506.10 Balance as per cash book                             5229.13

Add: Deposit in transit                        423NSF cheque collection                45.00  


Less: Outstanding cheque

No. 112         42.92

No. 117          307.00

No. 120          10.58

No. 122          75.67

Correction of error                                                81  

Add: Interest credited by bank     4.30Amount collected by bank    1250     Less: Bank service charge                 4.50 Miscellaneous bank charge      22  
Adjusted balance, March 31,2010                    6456.93 Adjusted balance, March 31,2010           6456.93


Question 2:

a)The balance in cash as reported on the june 30,2010, bank statement is rs. 5654.98.

b)McCarthy Corp. made a deposit of Rs 865 on june 30 that is not included on the bank statement.

c)A comparison between the cancelled checks returned with bank statement and McCarthy’s records indicated that two checks had not yet been returned to the bank for payment. The amounts of the two checks were rs. 236.77 and rs.116.80.

d)The cash account on the company’s book reported a balance on june 30 of rs.4165.66.

e)McCarthy rents some excess storage space in one of its warehouses, and the tenant pays its monthly rent directly to the bank for deposit in McCarthy’s account. The bank statement indicates that a deposit of rs.1500 was made during the month of june.

f)Interest earned on the checking account and added to McCarthy’s account during June was rs.11.75

g)Bank service charges were rs.15 for the month june was reported on the bank statement .

h)A comparison between the checks returned with the bank statement and the company’s record revealed that a check written by the company in the amount rs.56 was recorded by the company erroneously as a check for rs. 560.

Ans)                                                          Mc. Carthy Corporation                                                        

                                                             Bank Reconciliation Statement                                                                                                                                                     June 30, 2012

Balance as per Bank statement               5654.98 Balance as per cash book      4165.66                     
Add: Deposit in transit   865        Less: Outstanding cheque   236.77 116.80 353.57 Add: Rent revenue collected by bank             1500Interest collected by bank                           11.75 Correction of error                                         504 2015   Less: Bank service charge         15    
Adjusted balance, june 30,2012                   6166.41 Adjusted balance, june 30, 2012          6166.41