Answer:
Explanation:
Balance as per bank $11,460
Less: Outstanding Chq ($2,325)
Add: Deposit In Transit $3,750
Bank Charges $75
NSF Chq $240
Balance as per cash book $13,200
From the above reconciliation, The company will:
1. Debit : The expense account $2,325
Credit: The bank account $2,325
Being Expense incurred but is yet to reflect in the bank statement
2. Debit : Bank account $3,750
Credit : Sales / Other Income $3,750
Being cash deposit paid into bank but is yet to reflect in the statement
3. Debit: Bank Account $75
Credit: Bank Charge Expense $75
Being bank charges deducted from account
4. Debit : Bank Account $240
Credit: Sales/ Other Income $240
Being Chq paid into the account but has not cleared into the account
The above journal entries will reconcile the cash book balance with the Bank statement balance for the period March.
