Question

explain bank reconcilation statement example problems

Answer 1

Definition:

Bank reconciliation statement is a statement that depositors prepare to find, explain and understand any differences between the balance in bank statement and the balance in their accounting records.

Example

The bank statement of the Fast company shows a balance of $10,000 on 31 January 2015 whereas the company’s ledger shows a balance of $8,526. The following reasons were identified for this discrepancy.

An amount of $822 sent to the bank for deposit on 31 January 2015 does not appear in the bank statement.The following checks issued during the month of January have not yet been cleared by the bank.
Check No: 201, Issue date: 15 January 2015, Amount; $200;
Check No: 212, Issue date: 19 January 2015, Amount; $20;
Check No: 216, Issue date: 25 January 2015, Amount; $610;A note receivable amounting to $1,588 has been collected by bank for the company.The bank statement shows that interest amounting to $50 has been earned on average account balance during January.The bank has charged $10 for the collection of note.A check of $100 deposited by the company has been charged back as NSF.An amount of $25 has been deducted by bank as service charges for the month of January.The check no. 220 was issued to electricity company. The check was in the amount of $95 but was erroneously recorded in the cash payments journal as $59.

Required: Prepare a bank reconciliation statement for the Fast company using above information. Also make journal entries to update the accounting records of the company.

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Answer 2

Answer:

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