Brett White operates a roller skating? center, Roll AroundRoll Around USA. He ha

Question

Brett White operates a roller skating? center, Roll AroundRoll Around USA. He has just received the monthly bank statement at MayMay

31

from??

RidgewayRidgeway

National? Bank, and the statement shows an ending balance of

$ 725$725.

Listed on the statement are an EFT rent collection of

$ 315$315?,

a service charge of

$ 8$8?,

two NSF checks totaling

$ 95$95?,

and

aa

$ 9$9

charge for printed checks. In reviewing his cash? records,

WhiteWhite

identifies outstanding checks totaling

$ 611$611

and

a Maya May

3131

deposit in transit of

$ 1 comma 805$1,805.

During

MayMay?,

he recorded a

$ 310$310

check for the salary of a? part-time employee as

$ 31$31.

White'sWhite's

Cash account shows

a Maya May

3131

balance of

$ 1 comma 995$1,995.

Requirement

1. How much cash does

WhiteWhite

actually have at

May 31May 31?,

20162016??

Explanation / Answer

Solution :

Cash balance white actually have on may 31, 2016 = $1,919

Bank Reconciliation - May 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $725.00 Ending Balance as per cash books $1,995.00 Additions: Additions: Outstanding cash receipt $1,805.00 EFT Rent Collection $315.00 Deductions: Deductions: Outstanding Checks $611.00 NSF Cheque $95.00 Printing check charges $9.00 Service Charge $8.00 Incorrect recording of salary check ($310 - $31) $279.00 True cash balance as per bank $1,919.00 True cash balance as per books $1,919.00

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