Concept #1: Bank Reconciliation: Bank Column
Concept #2: Bank Reconciliation: Book Column
Practice: A company has a current balance in its Cash account of $3,400. The bank statement arrived showing a bank balance of $5,900. Prepare the cash reconciliation noting the following events:
• Deposits in transit total $600
• EFT receipt of dividend revenue of $900
• Bank error: the bank deducted $100 for a check written by another company.
• Service charge $20
• NSF check from a customer $50
• Book error: Company Check no. 333 was recorded for $510. The actual amount paid on account was $150.
• Outstanding checks total $2,010