CR and CP are incomplete, when I do enter the extra details from the Bank Statement to the Cash Books and Cash Account in the ledger, the balance does not add to the balance of the reconciliation.

The balance I get from the reconciliation is 22,080. Any ideas please, or any good websites with extra learning material that would help. Thanks.


# = (tick) / entry on both sets
--- / entry in B/S only

Statement:

1 Balance b/d 19,623CR #
Interest 125CR---
Deposit 895CR---
00512 253DR---

3 Deposit 1,012CR #

4 00519 333DR---
00522 188DR #

5 Deposit 865CR #

7 Direct Debit - AA 555DR--------------------

9 00524 85DR #
00526 1,550DR #

10 Deposit 1,135CR #

13 Direct Debit - YY 675DR---

15 Deposit 789CR # (115 of this deposit was dishonoured)
00525 120DR #

18 00527 655DR #
00523 428DR #

22 Deposit 542CR #
Dishonour 115DR---
Dishonour fee 15DR---

23 Deposit 1,036CR #

25 Dividend - JJ 725CR---

28 Deposit 921CR #

30 00530 643DR #
Bank charges 25DR---


Closing Balance 22,028CR #

8,045 (total credits) - 5,640 (total debits) = 2,405 + 19,623 = 22,028CR #

Previous Month Bank Reconciliation

Credit Bal as per B/S: 19,623

Add: O/D 895
20,518
Less: U/C
00512 253
00518 690
00519 333
00521 188
1,464

Debit Bal as per C/B: 19,054

Additional Info:

Entry in B/S for 22 (dishonour) relates to a cheque included in deposit on 15 (noted on statement)


Extract of Cash Books

C/R Journal
1 Bal b/d 19,054 #
2 R $1,012 #
4 R 865 #
9 R 1,135 #
12 R 789 #
19 R 542 #
22 R 1,036 #
26 R 921 #
31 R 1,322 ----- O/D

C/P Journal
2 522 $188 #
4 523 428 #
7 524 85 #
525 120 #
526 1,550 #
14 527 655 #
17 528 815 ------ U/C
20 529 299 ------ U/C
27 530 643 #
31 531 156 ------ U/C

Hope the layout is not to confusing.

Ending Bank Balance is $22,028
Add: Deposit not Recorded for $1,322
Deduct following Outstanding Checks:
#518 for $690
#521 for $188
#528 for $815
#529 for $299
#531 for $156
Adjusted ending Bank Balance is $21,202

Ending Balance per Company Books is $21,737
Add:
Dividend For $725
Interest for $125
Less:
Direct Debit for $555
Direct Debit for $675
Dishonoured Check for $115
Dishonoured Check Fee for $15
Bank Service Charge for $25
Adjusted ending Balance per Company Books $21,202

Thanks Pready for your time and help again,

Was not sure what to do with the amounts that where in the R/S but not in the B/S, etc..
I understand it more now cause of your post, once I go over it again it should be more clearer, at least now I know the way you worked it out.

Thanks again.

After the Bank Reconciliation you need to do Adjusting Entries in your General Journal on items that were used to Adjust your company Books Cash Balance.

i.e..
Debit Cash for 900
Credit dividend Revenue for 725
Credit Interest Revenue for 125

Debit the appropriate account for the Direct Debit of 555 (either an Expense Account or Accounts Payable Account) My guess is that it is for an Expense Account!!
Debit the appropriate account for the Direct Debit of 675 (either an Expense Account or Accounts Payable Account) My guess is that it is for an Expense Account!!
Debit Accounts Receivable for 130 (Dishonoured Check and the Fee)
Debit Bank Service Charge Expense Account for 25
Credit Cash for 1385

After amounts are posted in the General Journal then you need to post them to your General Ledger Accounts (T-Accounts)

Then your Company Books are up-to-Date.