PREPARING THE BANK RECONCILIATION

Bank Statement Books

Bank balance June 1 . . . . $10,000 Book balance June 1 . . . . . $10,150

Deposits and credits Checks and debits Cash Receipts Cash Disbursements
June 1 200.00 #209 10.00 June 10 $350.00 #210 $ 25.00
June 10 350.00 #210 25.00 June 20 425.00 #211 52.00
June 20 425.00 #211 52.00 #212 22.00
June 25 750.00 CM #213 199.00 #213 199.00
June 28 320.00 #216 205.00 June 28 320.00 #214 void
#217 650.00 June 30 275.00 #215 29.00
#218 200.00 Total $1,370.00 #216 205.00
#219 125.00 #217 560.00
#220 250.00 #218 200.00
NSF 125.00 #219 125.00
S.C. 6.00 #220 250.00
Total credits $2,045.00 Total debits $1,847.00 #221 60.00
#222 126.00
Bank balance June 30 . . . . $10,198 #223 82.00
Total $1,935.00

Book balance June 30 . . . . $9,585

CM – Represents $725 Note Receivable May Bank Reconciliation

collection plus interest revenue of $50 Balance per bank statement $10,000
less bank charges of $25. NSF represents
$125 check from ABC Company Add: Deposits in transit 200
deposited on 6/20. 10,200
Less: Outstanding checks
#201 $40
HINT: One error was made in recording #209 $10 50
disbursements. Adjusted balance per bank $10,150

Procedures for Finding Differences between Bank and Book Balances:

1. Examine last month’s bank reconciliation and list items that have not changed, i.e.,
outstanding checks from prior month which have not cleared (again) or other
reconciling items which were not corrected (bank service charges).
2. Compare all recorded disbursements per books to bank debits (charges) and list
differences.
3. Compare all recorded receipts per books to bank credits and list differences.
4. Prepare bank reconciliation from data collected.

Copyright 1999 John Wiley & Sons, Inc. Weygandt/Principles 5e T T 7–D