New Bookkeeper's Errors
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Given the following errors:
The bank recorded a deposit of $200 as $2,000.
The company's bookkeeper mistakenly recorded a deposit of $530 as $350.
The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount.
The bank statement shows a check written by the company for $255 was erroneously paid (cleared the account) as $225.
The bookkeeper wrote a check for $369 but erroneously wrote down $396 as the cash disbursement on the company's records.
For each error, describe to a recently hired bookkeeper how it would be shown on a cash reconciliation.
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I The bank recorded a deposit of $200 as $2,000:
There will be no entry in the company's books as the company's bookkeeper has recorded correctly.
II The company's bookkeeper mistakenly recorded a deposit of $530 as $350:
Balance as per books is the amount that the company's general ledger has for the balance in the Cash account. On the balance as per books the collections for the company by the bank must be added (deposits, etc.); and checks (from customers), Service charges, etc. must be subtracted. In this ...
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