Bank Reconciliation Four Column Consist of reconciliation beginning of the period cash balances, current period of cash receipt, current period of cash disbursement, and end of period cash balances. Example: 1. Cash balances balances as of October October 31, 1992, 1992, per bank bank statement statement was 17,520 17,520 2. Cash balance balance as of October October 31, 31, 1992 per per Nugget’s Nugget’s book book was 18,020 18,020 3. The total total cash receipt receipt per per November November 1992 1992 bank statemen statementt are 96,450; 96,450; including deposit in transit of 4,200 at October 31 4. Total cash receipts per Nugget’ Nugget’s s book during during Novembe Novemberr are 95,330 95,330 5. Total cash cash disburseme disbursements nts per per bank statement statement for November November are 91,780; 91,780; including 3,700 the check outstanding at October 31 6. Total cash cash disburseme disbursement nt per book book during during Novembe Novemberr are 92,848 92,848 Reconciling items: 1. A deposit of of $3,680 was mailed mailed November November 30 but but does not appear appear on the bank bank statement. 2. Check written written in Novembe Novemberr but not charged charged to the November November bank bank statement statement are $5,001 3. Nugget Nugget has not yet recorded recorded the $600 $600 of interest interest collected collected by the the bank Nov Nov 20 on Sequioa Co. bonds held by the t he bank for Nugget 4. Bank service service charges charges of $18 $18 are not yet yet recorded recorded on Nugget’s Nugget’s books books 5. One of the Nugget’s Nugget’s customer’ customer’s s checks for for $220 was returned returned with with the bank bank statement and marked NSF. The bank treated this check as disbursement. 6. Nugget Nugget discovered discovered that that check #7322, #7322, written written in November November for for $131 in payment of an account payable, had been incorrectly recorded in their books as $311 7. A check for for Nugent Oil Oil Co. in the amount amount of $175 $175 accompani accompanied ed the bank bank statement that had been incorrectly incorr ectly charged to Nugget Mining Bank Balance and Book Balance to Corrected Balance Form
Nugget Mining Company Proof of Cash for November 1992 Denver National Bank-Checking Account Balance Oct, 31 Per bank statement Deposits in transit At October 31 At November 30 Outstanding checks At October 31 At November 30 Bank error-incorrect check charged by bank
17,520 4,200
November Receipt Disburseme nt 96,450 91,780
22,190
(4,200) 3,680
3,680
(3,700)
Balance Nov,30
(3,700) 5,001
(5,001)
(175)
175
Correct amount
18,020
95,930
92,906
21,044
Per books
18,020
95,330
92,848
20,502
Interest collected by bank Error in recording check #7322 Unrecorded service charges at Nov 30 NSF checks returned Correct amount
600
18,020
95,930
(180) 18
600 180 (18)
220
(220)
92,906
21,044
Bank to Book Form
Nugget Mining Company Proof of Cash for November 1992 Denver National Bank-Checking Account
Per bank statement
Deposits in transit At October 31 At November 30 Outstanding checks At October 31 At November 30 Bank error-incorrect check charged by bank Interest collected by bank Error in recording check #7322 Unrecorded service charges at Nov 30 NSF checks returned Correct amount
Balance Oct, 31
November Receipt Disburseme nt
Balance Nov,30
17,520
96,450
22,190
4,200
(4,200) 3,680
(3,700)
91,780
3,680 (3,700) 5,001 (175) (180) 18
175 600 180 (18)
220
(220)
92,848
20,502
600
18,020
95,330
(5,001)
