Charlene roble

Accounting 3 BA53

ACTIVITY 1;

Prepare a bank reconciliation statement on the month of may using the following data

BOOK

Balances,may 31 1,522

Add;deposit 150

Less;Correction of book error

Understated our check #624 (54)

Dividends received (150)

Less;Debit memos

NSF check (45)

Service charge (20)

Adjusted cash balance 1,400

BANK

BALANCES,MAY31 333

Add;paycheck 1,235

Less: outstanding checks

Check#626 (40)

Check# 627 (125)

Adjusted Cash balance 1,400

ACTIVITY 2

1.In an organization ,how important to have a sound of cash management?

 Having a sound cash management in an organization will help them a lot not just to make the
business grow but to property handle the inflows and outflows of money coming from the
business.This will also prevent from the running out of funds and in paying the employee
salary on time.The organization will make to run it smoothly and conveniently.

2.What are the possibilities ,why the cash in the bank balance per book does not always equate with
the balance per bank?

 The reason why bank balance does not always equate with the book balanced is there are
transactions that is happening in the bank balance where in it does not immediately appears on
the book balance like services charges and spmetimes for the reason that there checks in the
booked that was being recorded yet it was not being use to in cash that checks.That’s why it
would not appear also in bank balance.

3.Are all organization required to prepare reconciliation statement?explain.

 Yes,because bank reconciliation statement will the organization keep track their records
specially the balances if they are the same with the book balance.If they are the same with the
book balance that this will help to see errors in both balances.bank reconciliation statement
also one of the internal control being used by all organizaions.