The following information is available regarding Desjardins Inc.’s bank informat
ID: 2447678 • Letter: T
Question
The following information is available regarding Desjardins Inc.’s bank information for September 2015:
The balance on the September 30, 2015 Bank Statement was $8,316.
The company’s cash account showed a balance of $8,706 on September 30.
A deposit of $800 made by Desjardins Inc. late on September 30 was not included on the Bank Statement.
A comparison between the cancelled cheques returned with the Bank Statement and the company records indicates that the following cheques were still outstanding on September 30:
No. 101 $ 641
No. 112 1,025
A cheque in the amount of $1,206 from a customer was returned along with the September’s Bank statement as a ‘NSF’ cheque. Desjardins Inc. intends to pursue payment from the customer.
Bank service charges amounted to $50.
Required:
1. Prepare the September 30, 2015 Bank Reconciliation for Desjardins Inc.
2. Prepare necessary Journal Entries to record the adjustments arising from the Bank Reconciliation for Desjardins Inc.
Explanation / Answer
2 Journal entries are required for adjustment entries where the bank account balance is impacted and not accounted in the bank ledger in the company
Bank Charges A/c Dr $50
To Bank A/c Cr $50
Customer A/c Dr $1,206
To Bank A/c Cr $1,206
Balance in bank ledger as on 30th Sept 2015 $8,706 Less: Deposits not included in bank statement ($800) Add: Cheques not encashed No 101 $641 No 112 $1,025 Less: Cheques not encashed in Bank ($1,206) Less: Bank Charges ($50) Balance in bank as on 30th Sept 2015 $8,316Related Questions
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