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Bank Reconciliation for Adcock Plastics Company

Adcock Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:


Balance per bank $26,746

Add: Deposits in transit 2,100

Deduct: Outstanding checks (3,800)

Balance per books $25,046

Month of April Results

Per Bank Per Books

Balance April 30 $27,995 $24,355

April deposits 8,864 12,889

April checks 13,100 13,080

April note collected 3,000 -0-
(not included in April deposits)

April bank service charge 35 -0-

April NSF check of
a customer returned by the bank
(recorded by bank as a charge) 900 -0-


(a) Calculate the amount of the April 30:

1. Deposits in transit

2. Outstanding checks

Show all your work for potential partial credit.

Solution Preview

1. Deposits in transit are deposits which have been recorded in the books and are not reflected in the bank. At of March 31, deposits in transit were 2,100. In April bank has given credit for 8,864. This would also include the deposit in ...

Solution Summary

The solution explains how to determine the amount of deposits in transit and outstanding checks.