In early August Company Axes received a bank statement which showed a balance of $55,502 as at 31st July. However, its own record showed a balance of $55,747 on the same date. The following differences are identified:

(i) Deposits amounting to $1,200 were not in the bank statement.

(ii) Two cheques were sent to suppliers, but yet to be accounted for by the bank. The cheques details were as follows:

· Cheque no:6661 dated July 20 $390

· Cheque no:6662 dated July 27 $570

(iii) The bank imposed a service charge of $65

(iv) A cheque no 6666 issued on July 24 for a water bill amounting to $3,350 was wrongly entered in the cash payment journal as $3,530. The amount was correctly shown as $3,350 in the bank statement.

(v) A check amounting to $120 was received from customer ABC on July 15 and deposited a day after. However, due to insufficient funds in Mr. ABC’s account, the bank informed Company Axes that the dishonored cheque had been debited to Company Axes.

Show the Bank Reconciliation Statement for Company Axes. It would be useful if you used a spreadsheet to lay out your answer.

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a bank reconciliation statement for Company Axes using a spreadsheet format Bank Reconciliation Stat... View the full answer