The following information is available to reconcile Branch Company\'s book balan

Question

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, 2015. a. On July 31, the company?s Cash account has a $27,497 debit balance, but its July b shows a $27,233 cash balance. b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Check No. 3065 for $382 and Check No. 3069 for $2,281, both written in July, are not among canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for S 1,270 but was erroneously entered in the accounting records as $1.250. d. A credit memorandum enclosed with the July hank statement indicates the bank collected $8.000 cash on a noninterest-bearing note for Branch. deducted a $45 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer. Evan Shaw. Branch has not yet recorded this check as NSF. f. Enclosed with the July statement is a $25 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Branch?s July 31 daily cash receipts of $11.514 were placed in the bank?s night depository on that date but do not appear on the July 31 bank statement.

Explanation / Answer

Particulras Amount($) Amount($) Balance as on July 31 st in Company Cash Account 27497 Add: Check out standing Check No.3031 1482 Check No.3065 382 Check No.3069 2281 Credit Memorandum 8000 12145 39642 Less Debit memorandum from a customer 805 Collection Fees 45 Debit Memorandum 25 Cash Receipts 11514 Check No.3056 ( Diffrence Amount due Error) 20 12409 Balance as per Bank Statement 27233 Journal Entries Debit($) Credit($) Rent A/c 20 Cash A/c 20 Being error is rectified Bank Charges A/c 45 Cash A/c 45 Being Collection fees Accounted Bank charges 25 Cash A/c 25 Being Bank service charges Accounted Cash A/c 8000 Non Interest bearing note 8000 Being Cash received from non interest bearing note

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