need help please read whole question I have sent this in muliipul times 4. ident
ID: 2532537 • Letter: N
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need help please read whole question I have sent this in muliipul times
4. identify each of the following reconciling items as (a) addition to the cash balance (b) a deduction from the cash balance per bank statement, (c) an addition to company's records, or (d) a deduction to the cash balance per company's records the cash bala Add to Bank balance Deduct from Add to bank balance company Company Deduct from tem balance balance 1.Note collected by bank 2.Check printing fee charged by bank 3.Check written for $125 recorded in the check register as $521. 4. Deposit in transit 5. Bank Service charges 6.Check for $1,100 incorrectly recorded by the bank as $110. 7.Deposit made on June 30th of $5400 doesn't appear on bank statement. 8. Outstanding checks 9. Debit memo for NSF check 10.A deposit of $4,444 made by another company was deposited in our company's account by bank.Explanation / Answer
Ans 1. Note collected by bank = It should be add to compnay balance because bank has collected the notes but not yet entered in the books bank.
Ans 2. Cheque printing fee charged by bank = It should be deducted from company balance because bank has dedcured the charges but books are not yet affected.
Ans 3. $396 should be deducted from bank balance because $521 - $125 = $396 has been recorded in excess in the bank register, so $396 should be rectified by the bank.
Ans 4. Deposit in transit should be added to bank balance because the amount has been recorded in the company bank but not yet recorded by bank balance.
Ans 5. Bank service charges should be deducted from company balance because the amount has been deducted by bank but not yet been entered in the books of accounts.
Ans 6. An amount of $1100 - $110 = $990 should be added to bank balance because the same amount has been short recorded by bank.
Ans 7. An amount of $5400 should be deducted from company balance because this amount has not been reflected in the bank statement yet
Ans 8. Outstanding cheques should be added to the company balance because the cheques of same amount has not cleared yet by bank
Ans 9. Debit memo nsf cheque should be dedducted from company balance because this amount has been dedcuted by bank but not yet deducted by company
Ans 10. $4444 should be deducted from bank balance because this amount has been added by our bank account by mistake of bank and which are funds of some other company.
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