1ST CANADIAN BANK

BANK STATEMENT
MONTH OF: MAY, 2020

CHEQUES DEPOSITS
DATE DETAILS DEBITS CREDITS BALANCE
1-May Opening balance 26,224.48
5-May Deposit 4,000.00 30,224.48
6-May Deposit 448.00 30,672.48
8-May Deposit 778.40 31,450.88
13-May Chq # 733 12,000.00 19,450.88
13-May Chq # 734 600.00 18,850.88
14-May Chq # 735 400.00 18,450.88
18-May EFT 3,616.12 22,067.00
18-May Chq # 736 400.00 21,667.00
18-May EFT 8,456.00 30,123.00
21-May EFT - Insurance 1,444.00 28,679.00
22-May NSF - ABC Inc. 208.00 28,471.00
29-May Chq # 737 4,400.00 24,071.00
31-May Interest earned 112.04 24,183.04
31-May Bank service charges 57.00 24,126.04

AN "EFT" IS AN ELECTRONIC FUNDS TRANSFER

1ST CANADIAN BANK

BANK STATEMENT
MONTH OF: MAY, 2020
CHEQUES DEPOSITS
DATE DETAILS DEBITS CREDITS BALANCE
1-May Opening balance 26,224.48
5-May Deposit 4,000.00 30,224.48
6-May Deposit 448.00 30,672.48
8-May Deposit 778.40 31,450.88
13-May Chq # 733 12,000.00 19,450.88
13-May Chq # 734 600.00 18,850.88
14-May Chq # 735 400.00 18,450.88
18-May EFT 3,616.12 22,067.00
18-May Chq # 736 400.00 21,667.00
18-May EFT 8,456.00 30,123.00
21-May EFT - Insurance 1,444.00 28,679.00
22-May NSF - ABC Inc. 208.00 28,471.00
29-May Chq # 737 4,400.00 24,071.00
31-May Interest earned 112.04 24,183.04
31-May Bank service charges 57.00 24,126.04
ALL OF THOSE ITEMS THAT ARE NOT HIGHLIGHTED
ARE RECONCILING ITEMS AND MUST BE INCLUDED
IN THE BANK RECONCILIATION.

ALL ERRORS WERE MADE IN THE GENERAL LEDGER

OUR COMPANY Ltd.
BANK RECONCILIATION
31-May-20

BANK SIDE
Bank Statement Balance 24,126.04
ADD: Outstanding deposit May 31st 4,450.00
28,576.04
LESS: Outstanding cheques
# Amount
738 126.50
739 345.00
740 2,114.00
741 3,900.00 - 6,485.50

There are no bank errors

Adjusted bank balance 22,090.54

BOOK SIDE
Ending balance in General Ledger 23,663.50
ADD:
Interest revenue 112.04
EFT Deposits not recorded -
Error recording cheque # 734 (660-600) 60.00
23,835.54

LESS: Bank service charges 57.00

NSF cheque 208.00
EFT payment for insurance 1,444.00
Error recording May 5th deposit 36.00
($484 - $448) - 1,745.00

Adjusted book balance 22,090.54

 OUR COMPANY Ltd.
GENERAL LEDGER - CASH ACCOUNT
MONTH OF: MAY, 2020

DATE DETAILS DEBITS CREDITS BALANCE

1-May Opening balance 26,224.48
4-May Deposit 4,000.00 30,224.48
4-May Chq # 733 12,000.00 18,224.48
5-May Deposit 484.00 18,708.48
7-May Deposit 778.40 19,486.88
8-May Chq # 734 660.00 18,826.88
9-May Chq # 735 400.00 18,426.88
18-May EFT 3,616.12 22,043.00
18-May Chq # 736 400.00 21,643.00
18-May EFT 8,456.00 30,099.00
19-May Chq # 737 4,400.00 25,699.00
22-May Chq 738 126.50 25,572.50
26-May Chq # 739 345.00 25,227.50
29-May Chq # 740 2,114.00 23,113.50
30-May Chq # 741 3,900.00 19,213.50
31-May Deposit 4,450.00 23,663.50

OUR COMPANY Ltd.

GENERAL LEDGER - CASH ACCOUNT
MONTH OF: MAY, 2020

DATE DETAILS DEBITS CREDITS BALANCE

1-May Opening balance 26,224.48
4-May Deposit 4,000.00 30,224.48
4-May Chq # 733 12,000.00 18,224.48
5-May Deposit 484.00 18,708.48
7-May Deposit 778.40 19,486.88
8-May Chq # 734 660.00 18,826.88
9-May Chq # 735 400.00 18,426.88
18-May EFT 3,616.12 22,043.00
18-May Chq # 736 400.00 21,643.00
18-May EFT 8,456.00 30,099.00
19-May Chq # 737 4,400.00 25,699.00
24-May Chq # 738 126.50 25,572.50
26-May Chq # 739 345.00 25,227.50
29-May Chq # 740 2,114.00 23,113.50
30-May Chq # 741 3,900.00 19,213.50
31-May Deposit 4,450.00 23,663.50
Here is the Book side of the demonstration
BOOK SIDE
Ending balance in General Ledger 23,663.50
ADD:
Interest revenue 112.04
Error recording cheque # 734 (660-600) office supplies 60.00
23,835.54
LESS: Bank service charges 57.00
NSF cheque 208.00
EFT payment for insurance 1,444.00
Error recording May 5th deposit 36.00
($484 - $448) (1,745.00)
Adjusted book balance 22,090.54

Every item that's on the book side MUST be included in a journal entry.
All of the ADD items will have a DR to Cash and all of the LESS items
need to have a CR to Cash.
DR CR
1 Cash 112.04
Interest revenue 112.04

2 Cash 60.00
Office supplies 60.00

3 Bank service charges 57.00

Cash 57.00

4 Accounts receivable 208.00

Cash 208.00
When you receive an NSF cheque, you record it into A/R
5 Insurance expense 1,444.00
Cash 1,444.00

6 A/R 36.00
Cash 36.00