a. The bank statement balance is $3,159 b. The cash account balance is $3,334. c

Question

a. The bank statement balance is $3,159 b. The cash account balance is $3,334. c. Outstanding checks amounted to $785 d. Deposits in transit are $850 e. The bank service charge is $101 f. A check for $53 for supplies was recorded as $44 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliatiorn August 31 Cash balance according to bank statement Adjustments: 3,159 Deposits in transit not recorded by bank 850 Outstanding checks -785 Total adjustments Adjusted balance Cash balance according to company's records Adjustments: 3,224 3,334 Bank service charge -40 Total adjustments Adjusted balance Prev

Explanation / Answer

Balance as per bank statement 3159

Add :- Deposits in transit 850

Less :-outstanding cheques amounted to -785

Add:- service charge deducted in bank statement 101

Add:- cheque of $53 recorded as of $44(53-44). 9

Balance as per cash book in company records. 3334

As we have started with the bank statement balance we have to kept in mind that we have to reach the balance of cash book as per company records and all the reasons due to which difference is arising is recorded in the bank reconciliation statement.

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