Bank Rec, Dec 31, 2004
Balance per ledger Dec.31, 2004 $17,174.86
Cash receipts received on the last day of December and
charged to "cash in bank" on books but no deposited 2,662.25
Debit memo for customer's cheque returned unpaid (cheque is on
hand but no entry has been made on boks) 200.00
Debit memo for bank service charge for December 5.50
Cheques drawn but not paid by bank
(see detailed list below) $2,267.75
Credit memo for proceeds of a note receivable that
had been left at the bank for collection but which
has not been recorded as collected. 400.00
Cheques for an account payable entered on books as
$240.90 but drawn and pais by bank as $419.00 178.10 (2,945.85)
Computed balance 17,196.76
Unlocated difference (200.00)
Balance per bank (checked for confirmation) 16,996.76
Cheques drawn but not paid by bank:
I need help preparing the corrected reconciliation and preparing the journal entries for items that should be adjusted prior to closing the books.
The solution is contained in the attached Excel worksheet. One comment ...
The solution presents a corrected bank reconciliation in the two step format: book to bank and bank to book. The format is more understandable when looking for errors. The journal entries needed for the books are also written out in the solution.
This is an auditing question and it contains an error not easily seen, but proper auditing technique would find it. The solution discloses the little trick too.