Jansen Company\'s general ledger showed a checking account balance of Dollar 25,

Question

Jansen Company's general ledger showed a checking account balance of Dollar 25,020 at the end of May 2016. The May 31 cash receipts of Dollar 2,460, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2016. showed bank service charges of Dollar 50. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling Dollar 2,010. Required: Prepare a bank reconciliation as of May 31, 2016.

Explanation / Answer

Balance as per bank statement = Book balance - Cash receipts accounted by bank on June 1 - Bank service charge + Checks not processed by the bank

= $25,020 - $2,460 - $50 + $2,010 = $24,520

Particulars Amount $ Bank balance to corrected balance Balance as per bank statement 24520.00 Add: Cash receipts accounted by bank on June 1 2460.00 Add: Bank service charge debited by bank 50.00 Less: Checks not processed by the bank -2010.00 Corrected Cash balance 25020.00

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