Bank Reconciliationsa sample problem

© Copyright 2011 by M. Ray Gregg. All rights reserved. 2

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

© Copyright 2011 by M. Ray Gregg. All rights reserved. 3

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

4

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

5

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

6

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

7

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

8

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

9

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 10

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

11

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 12

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

13

Beginning Balance 14,691.80Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 14

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

15

Beginning Balance 19,913.90 Beginning Balance 14,691.80Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 16

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

17

Beginning Balance 19,913.90 Beginning Balance 14,691.80

(a) Outstanding checks 7,070.10

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 18

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

19

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20

Beginning Balance 14,691.80

(a) Outstanding checks 7,070.10

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 20

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of

the note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

21

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20

Beginning Balance 14,691.80(c) Note and Interest 3,120.00

(a) Outstanding checks 7,070.10

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 22

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

23

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20

Beginning Balance 14,691.80(c) Note and Interest 3,120.00

(a) Outstanding checks 7,070.10 (d) Printed checks 40.00

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 24

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The

bank credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

25

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20

Beginning Balance 14,691.80(c) Note and Interest 3,120.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 26

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

27

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 28

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

29

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 30

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

31

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

32

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved. 33

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

© Copyright 2011 by M. Ray Gregg. All rights reserved.

34

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

35

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

36

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

37

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

38

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

39

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

40

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

41

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

42

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

43

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.007,100.10

Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

44

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.10Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

45

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.10Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

46

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

47

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

48

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

49

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

50

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

51

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

52

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

53

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

54

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

55

Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00

Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00

(a) Outstanding checks 7,070.10(e) Error in deposit 30.00

(d) Printed checks 40.00(h) Bank service charges 21.80

Bank’s Records Company’s Records

© Copyright 2011 by M. Ray Gregg. All rights reserved.

56

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

57

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

58

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

59

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

60

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

61

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved. 62

The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear

on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the

note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank

credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash

payments journal as $96. The check was for the payment for the purchase of office supplies on account.

g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.

Bank Reconciliation Sample Problem

63

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved.

64

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

65

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

© Copyright 2011 by M. Ray Gregg. All rights reserved.

66

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

67

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00

68

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00

69

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00

© Copyright 2011 by M. Ray Gregg. All rights reserved.

70

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

71

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

72

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Miscellaneous Expense 61.80 Cash 61.80

© Copyright 2011 by M. Ray Gregg. All rights reserved.

73

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Miscellaneous Expense 61.80 Cash 61.80

© Copyright 2011 by M. Ray Gregg. All rights reserved.

74

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

Date Account Title Ref. Debit Credit

5/31 Miscellaneous Expense 61.80 Cash 61.80

© Copyright 2011 by M. Ray Gregg. All rights reserved.

75

Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20

(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10

(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00

Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00

(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00

Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00

(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00

J. B. Lindsay CompanyBank Reconciliation

May 31, 201x

© Copyright 2011 by M. Ray Gregg. All rights reserved.

Bank Reconciliationsa sample problem

77© Copyright 2011 by M. Ray Gregg. All rights reserved.