Reconciliation Statement...hardest

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January 3rd 2010, 12:48 AM
smallvinfhungkuru

Reconciliation Statement...hardest

I've been answering this since yesterday but I can't balance it....

Here it is...

On October 31, Ronald Gison compared his checkbook balance with his bank statement and discovered the following:

Checkbook

Balance: P2,799.55

Deposits: 650.00
1,460.00
2,200.00
918.75
705.60
898.00
1,375.00
2,500.00
560.20
89.80

Checks Issued: 325.00
750.50
400.00
820.50
1,280.00
970.00
654.80
289.65
709.40

Bankbook

Balance: P2,121.65

Deposits: 2,200.00
918.75
898.00
1,375.00
2,500.00
200.00
450.00
143.55
78.00

Checks Issued: 400.00
750.50
1,280.00
820.50
970.00

Service Charge: 62.70

.................................................. .................................................. .................................................. .............
I don't really know how to balance it...but I've tried...
January 3rd 2010, 01:02 AM
janvdl

Quote:

Originally Posted by smallvinfhungkuru

I've been answering this since yesterday but I can't balance it....

Here it is...

On October 31, Ronald Gison compared his checkbook balance with his bank statement and discovered the following:

Checkbook

Balance: P2,799.55

Deposits: 650.00
1,460.00
2,200.00
918.75
705.60
898.00
1,375.00
2,500.00
560.20
89.80

Checks Issued: 325.00
750.50
400.00
820.50
1,280.00
970.00
654.80
289.65
709.40

Bankbook

Balance: P2,121.65

Deposits: 2,200.00
918.75
898.00
1,375.00
2,500.00
200.00
450.00
143.55
78.00

Checks Issued: 400.00
750.50
1,280.00
820.50
970.00

Service Charge: 62.70

.................................................. .................................................. .................................................. .............
I don't really know how to balance it...but I've tried...

Back in the day when I did Accounting the trick was with cheques which bounced. Also remember what's normally debit and credit for you is vice versa in the ledgers of your Bank. (The institution, not the ledger entry)

You need to complement your books with those of the bank. Meaning, what's showing on the bank statement and not in your books should be documented, and vice versa.
January 3rd 2010, 01:09 AM
smallvinfhungkuru

Quote:

Originally Posted by janvdl

Back in the day when I did Accounting the trick was with cheques which bounced. Also remember what's normally debit and credit for you is vice versa in the ledgers of your Bank. (The institution, not the ledger entry)

You need to complement your books with those of the bank. Meaning, what's showing on the bank statement and not in your books should be documented, and vice versa.

what do you mean?...do you mean that I should "less" the deposits and "add" the checks issued and service charge?...
January 3rd 2010, 01:18 AM
janvdl

Quote:

Originally Posted by smallvinfhungkuru

what do you mean?...do you mean that I should "less" the deposits and "add" the checks issued and service charge?...

No. If the bank statements say "Deposits" and "Withdrawals" or whatever then it's fine. If the Bank statement also has "Debit" and "Credit" then you need to remember they have to switch around.
January 3rd 2010, 01:21 AM
smallvinfhungkuru

Quote:

Originally Posted by janvdl

No. If the bank statements say "Deposits" and "Withdrawals" or whatever then it's fine. If the Bank statement also has "Debit" and "Credit" then you need to remember they have to switch around.

I can't understand...what does it have to do with balancing the checkbook balance and the bank statement balance?...please elaborate more...thank you...
January 3rd 2010, 01:26 AM
janvdl

Bank Reconciliation | AccountingCoach.com

Accounting Principles I: Bank Reconciliation - CliffsNotes
January 3rd 2010, 01:35 AM
smallvinfhungkuru

i'm sorry sir....but I think this problem doesn't involve any bank statement...the needed are the equal balance of the checkbook and the bankbook after adding or subtracting the deposits or the checks issued...this reconciliation statement is for the owner of the checkbook and not for the bank...reconciliation statement is a statement putting an agreement the bank statement balance and the checkbook balance...

please correct me if i'm wrong...i would really appreciate it...thanks...
January 3rd 2010, 02:27 AM
smallvinfhungkuru

Quote:

Originally Posted by janvdl

Bank Reconciliation | AccountingCoach.com

Accounting Principles I: Bank Reconciliation - CliffsNotes

i'm sorry sir....but I think this problem doesn't involve any bank statement...the needed are the equal balance of the checkbook and the bankbook after adding or subtracting the deposits or the checks issued...this reconciliation statement is for the owner of the checkbook and not for the bank...reconciliation statement is a statement putting an agreement the bank statement balance and the checkbook balance...

please correct me if i'm wrong...i would really appreciate it...thanks...
January 3rd 2010, 05:31 AM
Wilmer

Kuru, you seem confused with SIMPLE terminology; or your English is
not good enough to understand; can you find someone to help you
understand what the 2 links that Janvdl gave you are saying:
EVERYTHING you need to know is clearly stated in these 2 sites.
January 3rd 2010, 05:38 AM
Wilmer

Quote:

Originally Posted by smallvinfhungkuru

i'm sorry sir....but I think this problem doesn't involve any bank statement....

YES, it DOES involve a bank statement: a reconciliation means you are
trying to make the bank statement AGREE with the statement YOU made
up as you were recording deposits and checks.