Youve just received your bank statement in the post. You find your balance at the bank is
Question:
You’ve just received your bank statement in the post. You find your balance at the bank is £1,800 beginning balance, £7,000 in deposits, £6,500 in payments, and your ending balance is £2,300. You review the deposits and find that a deposit of £1,000 does not show on the statement. You find that cheques totaling £2,500 haven’t cleared yet. The balance in your bank account is £1,200.
Does your bank account reconcile to the balance on your bank statement?
Suppose that you can’t reconcile your bank statement. As you review the cheques, you see one written for £2,500 that you haven’t recorded in your books. As you research the cheque, you find that it’s a payment made to Olive’s Office Supplies.
How would you record that in the books?
Suppose you can’t reconcile your bank statement and you find that a deposit of £5,300 isn’t recorded. As you research the deposit, you find that the sales receipts weren’t recorded for 15 May.
How would you record that in the books?
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso