Tina McDonald is trying to reconcile her cash at bank balanc

Tina McDonald is trying to reconcile her cash at bank balance with the bank statement received by mail. For the following transactions: State if the transaction will require a cash payments journal, cash receipts journal or an adjustment to the bank statement balance in the reconciliation

Tick the box in either columns 2, 3, 4 or 5 to indicate the proper action for making adjustments in order to prepare a bank reconciliation statement. Assume the bank statement has a credit balance.

What needs adjusting? CPJ, CRJ or bank statement balance in the reconciliation) Add to Cash at Bank ledger account Deduct from Cash at Bank Add to Deduct fromm Balance as per Bank Statement Balance as per Bank Statement ger Account 4 1. Outstanding cheques written by Tina (unpresented) 2. Bank service charge. 3. Interest credited to bank account. 4. Interest charged to bank account. 5. Deposit recorded in the Cash account and taken to the bank but not yet processed by the bank. 6. Bank inadvertently charged your bank account for another company\'s bank fees. 7. Fee charged by bank for returned cheque. 8. Tina wrote a cheque for 576 and it cleared the bank for $76. However Tina recorded the cheque in the Cash account as $67. How is the difference of $9 handled on the bank reconciliation? 9. Tina had a receipt of $989 and correctly prepared the bank deposit slip for $989. However Tina recorded the receipt in the Cash account as $998. How is the difference of $9 handled on the bank reconciliation? 10. Tina deposited a cheque from a customer into the cheque account. A few days later, the cheque was returned with the notation account closed and the bank deducted the amount on the bank statement.

Solution

What needs adjusting 1. Outstanding cheques written by Tina(Unpresented) 5. Deduct from Balance as per Bank Statement Bank statement 2. Bank service charges 3. Deduct from Cash-at-Bank Ledger Account CPJ 3. Interest Credited to bank account 2. Add to Cash-at- Bank Ledger Account CRJ 4.Interest charged to Bank account 3. Deduct from Cash-at-Bank Ledger Account CPJ 5. Deposit recorded in Cash account & taken to bank but not yet processed by the bank 4. Add to   Balance as per Bank Statement Bank statement 6.Bank inadvertently charged your bank a/c for another company\'s bank fees (Bank\'s Error) 4. Add to   Balance as per Bank Statement Bank statement 7. Fee charged by bank for returned check (No sufficient Funds Check) 3. Deduct from Cash-at-Bank Ledger Account CPJ 8.Difference of $ 9 (Short-debit by Tina) 3. Deduct from Cash-at-Bank Ledger Account CPJ 9.Difference of $ 9 (Excess credit by Tina) 3. Deduct from Cash-at-Bank Ledger Account CRJ 10.Tina deposited a check--returned a/c closed by bank 3. Deduct from Cash-at-Bank Ledger Account CRJ