Del Gato Clinic deposits all cash receipts on the day when they are received and

Question

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2015, its Cash account shows a(n) $13,773 debit balance. Del Gato Clinic’s June 30 bank statement shows $14,215 on deposit in the bank. a. Outstanding checks as of June 30 total $2,762. b. The June 30 bank statement included a $80 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $789 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $798. d. The June 30 cash receipts of $2,249 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.

Explanation / Answer

Bank Reconciliation Statement:

Particulars $ Balance as per bank statement as on June 30, 2015 14215 Adjustments: Add: deposit in transit 2249 16464 Less: Outstanding cheques 2762 Adjusted balance as per bank statement on June 30, 2015 13702 Balance as per Cash Bookt as on June 30, 2015 13773 Adjustments: Add: Cheque for utility expenses wrongly recorded 9 13782 Less: Bank Charges 80 Adjusted balance as per cah book as on June 30, 2015 13702

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