[kazie15]

The questions are on the top, and my answers are on the bottom. I am hopelessly confused. Can any one verify my thoughts or point me in the right direction if I am wrong.

1. Bank service charge
Deduction Book Balance (Cr.)

2. Checks written and mailed to payees
Not Shown on the Reconciliation

3. Checks written by another depositor but charged against this company’s account
Not Shown on the Reconciliation

4. Principal and interest on a note collected by the bank but not yet recorded by the company
Addition Book Balance (Dr.)

5. Special bank charge for collection of note in part 4 on this company’s behalf
Deduction Book Balance (Cr.)

6. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s record keeper.
Deduction Book Balance (Cr.)

7. Interest earned on the cash balance in the bank
Addition Book Balance (Dr.)

8. Night deposit make on September 30 after the bank closed
Addition Bank Balance, No Adjustment

9. Checks outstanding on August 31 that cleared the bank in September
Not Shown on the Reconciliation

10. NSF checks from customers returned on September 25 but not yet recorded by this company
Deduction Book Balance (Cr.)

11. Checks written by the company and mailed to payees on September 30.
Deduction to Bank Balance, No Adjustment

12. Deposits made on September 5 and process by the bank on September 6.
Not Shown on the Reconciliation

[pready]

2. If the checks are still outstanding then you deduct the amount of the checks from the bank balance.

If the checks have cleared then they are not shown on the reconciliation.

A bank reconciliation is done to bring your book balance and your bank balance into agreement.

If an entry is in your book balance that is not on the bank balance then you need to either add or deduct that amount to the bank balance, also for items that are on the bank balance but not in your book balance then you need to either add or deduct that amount on your book balance as well as do an adjusting entry.