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The following information pertains to Wheaton Company. All figures are in dollar

ID: 2426873 • Letter: T

Question

The following information pertains to Wheaton Company. All figures are in dollars.

Deposits in transit on August 31: 1,200

Checks Outstanding on August 31: 2,500

Wheaton has received the September 30, bank statement that is summarized below:

Item Disbursements Deposits Balance August 31 Balance 12,800

Checks deposited during September 15,225

Note collected for Wheaton during September, including $75 of interest 975

Checks cleared during September 17,470

Bank Service Charges 30

NSF check returned to depositor 800

September 30 balance 10,700

Per Wheaton’s cash ledger, during September, it wrote checks for a total of $19,500 and deposited checks for a total of $17,500. The cash ledger showed a balance of $9,500 on September 30th. Prepare a bank reconciliation dated September 30 and arrive at the correct cash balance.

Explanation / Answer

Preparation of Bank Reconciliation Statement of Wheaton Company S No Particulars Amount $ Balance as per bank statement as on 30th Sep (i)        10,700 Add: Deposits in Transit          1,200 Bank charges debited in bank statement               30 NSF Cheque returned to depositer             800 A)          2,030 Less: Un cleared cheques           (255) Note Collected not accounted in cash           (975) Cheques wrote but not deposited to bank        (2,000) B)        (3,230) Balance as per Cash Ledger { (i) + (A) + (B) }          9,500 Given Cash balance as per Ledegr          9,500 Diff/ Control Field               -