Question

a. Balance according to the bank statement at December 31, $283,000.b. Balance according to the ledger at December 31, $245,410.c. Checks outstanding at December 31, $68,540.d. Deposit in transit, not recorded by bank, $29,500.

Answer 1

Answer and Explanation:

The preparation of the bank reconciliation statement is presented below:

Balance as per bank statement as on Dec 31 $2,83,000.00

Add: Deposit in transit  $29,500.00  

less: cheques outstanding  $68,540.00

Adjusted Balance as on 31st December  $2,43,960.00

Balance as per Ledger as on Dec 31  $2,45,410.00

Less: Bank debit memo for service charges 750  

less: payment of invoice wrongly recorded 700  

Adjusted Balance as per 31st December  $ 2,43,960.00