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iyounus74 · Jan 2, 2009, 10:10 PM

Can you help me out to solve this reconciliation.

"ABC Company's bank statement for the month ended January 31 showed a balance per bank if $8000. The company's cash balance at January 1st was $3655. Other information is as follows:

1. Cash receipts for January were $87,679 of which $5200 was outstanding at January 31.
2. The bank statement shows a debit memorandum for $40 for cheque printing charges.
3. cheque No. 119 payable to Lynch company was recorded in the general Journal and cleared the bank for $248. A review of the account payable subsdiary ledger shows a $36 credit balance in the account of Lynch company and that the payment to it should have been for $284.
4. The Total amount of cheques written during January was $74936 of which $5789 was outstanding at January 31.
5. Cheque No. 127 was correctly written and paid by the bank for $409. The general Journal reflects an entry for cheque no.127 as a debit to account payable and a credit to cash in bank for $490.
6. The bank returned an NSF cheque from a customer for $760.(Cheque dishonoured)
7.The bank included a credit memorandum for $18,260 which represent an EFT collection of a customer's account.

Instruction:

a) Calculate the cash balance per books for ABC Company at January 31.
b) Prepare a bank reconciliation for ABC Company at January 31.
c) Prepare any adjusting entries necessary for jones company as a result of the bank reconciliation.

Thanks

Imran

pready · Jan 3, 2009, 07:56 AM

First you need to set up two sections. One for your book balance and one for the bank balance. The reason is that you are trying to bring both of these balances into agreement.

Next take your line items and either add or subtract the amount from The book balance or bank balance so that both balances show the amount. For example No.1 has already been posted to your book balance so you need to add $5,200 to the bank balance.

After you finish the balances in both your book balance and the bank balance should be in agreement.