Chivalry company newly hired assistant prepared the following bank reconciliation
On march 31 2012.


Book balance 1405000
Add: march 31 deposit 750000
Collection of note 2500000
Interest on note 150000 3400000
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Total 4805000
Less: Cavalry company
Deposit to our
Account 1100000
Bank service
Charge 5000 1105000
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3700000



Bank balance 5630000
Add: error on check
# 175 45000
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5675000
Less: Preauthorized
Payment for
Light and bill 245000
NSF check 220000
Outstanding
Checks 1650000 2115000
-------------
Adjusted bank balance 3560000



Check # 175 was made for the proper amount of 249000 in payment of account. However it was entered in the cash disbursement journal as 294000.


Chivalry company authorized the bank to automatically pay its light and water bills as submitted directly to the bank.



Required:

a. prepare a corrected bank reconciliation.
b. prepare the adjusting entries on march 31 2012

And your question is? This is a simple bank reconcilliation problem. If you do not know how to do this type of problem look in an accounting textbook, which will have examples on how to do one.

Quote:

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Originally Posted by pready

And your question is? This is a simple bank reconcilliation problem. If you do not know how to do this type of problem look in an accounting textbook, which will have examples on how to do one.

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They are not balance. What are the steps to make it balance?

Quote:

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Originally Posted by pentwing_16

they are not balance. what are the steps to make it balance?

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What do you mean they are not in balance?

The steps are;
Reconcile the bank statement with the cash book balance by cross referencing all the entries in both the bank statement and the ledger account

Enter any transactions which originate in the bank account and are not posted in the ledger

Identify outstanding transactions not yet entered by the bank

Prepare a bank reconciliation statement
Adding outstanding deposits to the bank balance and deducting outstanding payments

Identify and correct errors

When all else fails use the Indian method
To unidentified difference

Quote:

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Originally Posted by pready

And your question is? This is a simple bank reconcilliation problem. If you do not know how to do this type of problem look in an accounting textbook, which will have examples on how to do one.

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The book balance is 3700000 while the bank balance is 3560000.
How to make them balance?

I laid out the steps for you has it occurred to you that what is presented contains errors in methodology?

I suggest you recast the reconciliation according to the methodology I laid out for you

So essentially you have two statements the cash book statement which will detail any transactions not entered in the ledger and corrections to be made, and the reconciliation statement which will reconcile the bank statement to the cash book statement.

And please don't ask that question again, do some work

Book 1405000

Note 2650000

Cheque 45000
Error
Utility -245000
NSF -220000
Deposit 1100000
Charge -5000

Corrected ledger 4730000

Bank statement 5630000

Deposit 750000

o/s -1650000

Ledger balance 4730000


QED took about five minutes whereas your posts have wasted four days