Bank Reconciliation and Journal Entries – 5 important facts to note

Bank reconciliation : The following information is available to reconcile Branch Company’s book balance of cash wiih its bank statement cash balance as of July 31, 2015.

a. On July 31, the company’s Cash account has a $24754 debit balance, but its July bank statement shows a $26,22O cash balance.

b. Check No. 3031 for $1J70 and Check No. 3040 for $577 were outstanding on the June 3O bank reconciliation.

Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not.

Also, Check No. 3065 for $361 and Check No. 3069 for $1,938, both written in July, are not among ihe canceled checks on the July 31 statement.

c. ln comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,220 but was erroneously entered in the accounting records as $1,210.

bank reconciliation

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