bank reconciliation

jahubb · #1 Jan 18, 2008, 12:38 PM

Ok, My question is how do you prepare a bank reconciliation without a book balance?
EXAMPLE:
Bank Statement Balance August 31 24,500
Book Balance (Before Adjustments) ?
Outstanding Checks 2,700
NSF Checks 400
Service Cahrges 200
Deposits in Transit 800
Interest Earned on Checking Account 100
Thanks

pready · Jan 18, 2008, 03:20 PM

First take the Bank Balance then Add Deposits in Transit and then Deduct the Outstanding Checks. This is the Adjusted Bank Balance which should equal the Adjusted Company Cash Account.

With the Adjusted Cash Balance you then need to work backward from the Company Cash Side of the Reconciliation. First Deduct the Interest Earned then Add the NSF Check and the Bank Service Charge. That leaves you with the Unadjusted Company Cash amount.

jahubb · Jan 18, 2008, 05:42 PM

Quote:

Originally Posted by jahubb

Ok, My question is how do you prepare a bank reconciliation without a book balance?
EXAMPLE:
Bank Statement Balance August 31 24,500
Book Balance (Before Adjustments) ?
Outstanding Checks 2,700
NSF Checks 400
Service Cahrges 200
Deposits in Transit 800
Interest Earned on Checking Account 100
Thanks

Thanks, I finally figured it out. I checked it with how you said to do it, Thank's for your help.



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!