Thread: Reconciliation Statement (part 3)

This is harder...

On May 1 Malou Lagman received from the bank her statement for April together with the cancelled checks. Her bank balance was 8, 183.20. On comparing the cancelled checks with her check stubs, she found the following checks outstanding: No. 85 for P450 and No. 87 for P500. She also found the following: Deposit made on April 30 of P240 was not recorded in the bank statement; a deposit of P745 was recorded on stub as P645; a check of P350 was written as P480 on the stub. Other discrepancies on the stub were: a check of P450 was omitted and a deposit of P102 was not recorded; also a service fee of P18.50. Prepare a reconciliation statement.

What do you not understand? How far can you get?

Originally Posted by smallvinfhungkuru

This is harder...

On May 1 Malou Lagman received from the bank her statement for April together with the cancelled checks. Her bank balance was 8, 183.20. On comparing the cancelled checks with her check stubs, she found the following checks outstanding: No. 85 for P450 and No. 87 for P500. She also found the following: Deposit made on April 30 of P240 was not recorded in the bank statement; a deposit of P745 was recorded on stub as P645; a check of P350 was written as P480 on the stub. Other discrepancies on the stub were: a check of P450 was omitted and a deposit of P102 was not recorded; also a service fee of P18.50. Prepare a reconciliation statement.

You do not state the balance the Malou has carried in her check book. That means you trust the bank completely to be correct.

As such take the Bank Statement Balance
deduct (correctly) the total of the checks written on Malou's account that have not cleared,
ADD the deposits made to the account that are NOT shown on the statement
and DEDUCT the service fees that were NOT included in the statement's balance.
The result is the balance she should have in her checkbook up to (and including) the last check written.

Originally Posted by aidan

You do not state the balance the Malou has carried in her check book. That means you trust the bank completely to be correct.

As such take the Bank Statement Balance
deduct (correctly) the total of the checks written on Malou's account that have not cleared,
ADD the deposits made to the account that are NOT shown on the statement
and DEDUCT the service fees that were NOT included in the statement's balance.
The result is the balance she should have in her checkbook up to (and including) the last check written.

oh, i'm sorry...i have some corrections...the bank balance was P8,765.70 while her checkbook balance was P8,183.20.