Bank Reconciliation Statement:

Example: 1
Company A's bank statement dated Dec 31, 2011 shows a balance of Tk.24,594.72. The company's cash
records on the same date show a balance of Tk.23,196.79. Following additional information is available:

1. Following checks issued by the company to its customers are still outstanding:
No. 846 issued on Nov 29 Tk.320.00
No. 875 issued on Dec 26 49.21
No. 878 issued on Dec 29 275.00
No. 881 issued on Dec 31 186.50
2. A deposit of Tk.400.00 made on Dec 31 does not appear on bank statement.
3. An NSF check of Tk.850 was returned by the bank with the bank statement.
4. The bank charged Tk.50 as service fee.
5. Interest income earned on the company's average cash balance at bank was Tk.1,237.22.

Balance as per cash book 23,196.79

Add:
1. Outstanding checks 830.71
5. Interest income on deposit 1237.22
6. Note receivable collected by bank with interest 550.00
7. Deposit wrongly understated (430-340) 90.00
2707.93
25904.72
Less:
2. Deposit in transit 400.00
3. NSF Checks 850.00
4. Bank Service Charge 50.00
6. Collection fee 10.00
1310.00
Balance as per bank statement 24,594.72
6. The bank collected a note receivable on behalf of the company. Amount received by the
bank on the note was Tk.550. This includes Tk.50 interest income. The bank charged a
collection fee of Tk.10.
7. A deposit of Tk.430 was incorrectly entered as Tk.340 in the company's cash records.

Instruction:
Prepare a bank reconciliation statement using the above information.
Example: 2

On May 31, 2015, Robin Company had a cash balance per books of Tk.13287. The bank
statement from New York State Bank on that date showed a balance of Tk.13332. A comparison
of the details on the bank statement with the details in the cash account revealed the following
facts.

i. The statement included a debit memo of Tk.35 for the printing of additional company
checks.
ii. Cash sales of Tk.1,720 on May 12 were deposited in the bank. The cash receipts journal
entry and the deposit slip were incorrectly made for Tk.1,820. The bank credited Robin
Company for the correct amount.
iii. Outstanding checks at May 31 totaled Tk.1,225, and deposits in transit were Tk.2,100.
iv. On May 18, the company issued check no. 1181 for Tk.911 to J. Greenberg on account.
The check, which cleared the bank in May, was incorrectly journalized and posted by
Robin Company for Tk.119.
v. A Tk.4,000 note receivable was collected by the bank for Robin Company on May 31
plus Tk.80 interest. The bank charged a collection fee of Tk.25. No interest has been
accrued on the note.
vi. Included with the cancelled checks was a check issued by Powers Company to Jerry Saltz
for Tk.900 that was incorrectly charged to Robin Company by the bank.
vii. On May 31, the bank statement showed an NSF charge of Tk.1,308 for a check issued by
Simon de Pury, a customer, to Robin Company on account.

Instructions
Prepare the bank reconciliation at May 31, 2015.

Balance as per cash book, May 31, 2015 13,287.00

Add:
iii. Outstanding checks 1,225.00
 v. Note collects with interest (4,000+80) 4,080.00
5305.00
18,592.00
Less:
i. Printing charge 35.00
ii. Bank deposit incorrectly overstated by (1820-1720) 100.00
iii. Deposit in transit 2100.00
iv. Issued check incorectly understated by (911-119) 792.00
v. Note collection fees 25.00
vi. Cancelled check incorectly charged by bank 900.00
vii. NSF Checks 1308.00
(5260.00)
Balance as per bank statement, May 31, 2015 13,332.00

Example: 3

The following information pertains to Miner Video Company.

1. Cash balance per bank, July 31, Tk.7,263.
2. July bank service charge not recorded by the depositor Tk.28.
3. Cash balance per books, July 31, Tk.7,284.
4. Deposits in transit, July 31, Tk.1,500.
5. Bank collected Tk.900 note for Miner in July, plus interest Tk.36, less fee Tk.20. The
collection has not been recorded by Miner, and no interest has been accrued.
6. Outstanding checks, July 31, Tk.591.

Instructions
(a) Prepare a bank reconciliation at July 31.

Example: 4

The information below relates to the Cash account in the ledger of Porter Company.
Balance September 1—Tk.17,150; Cash deposited—Tk.64,000.
Balance September 30—Tk.17,404; Checks written—Tk.63,746.

The September bank statement shows a balance of Tk.16,422 on September 30 and the following
memoranda.

Credits
Collection of Tk.1,500 note plus interest Tk.30 -Tk.1,530
Interest earned on checking account Tk.45

Debits
NSF check: Charles Esten Tk.425
Safety deposit box rent Tk.65
At September 30, deposits in transit were Tk.4,450, and outstanding checks totaled Tk.2,383.
Instructions
(a) Prepare the bank reconciliation at September 30.