Homework Help is Here – Start Your Trial Now!
Business
Accounting
From page 4-4 of the VLN, in a bank reconciliation how are outstanding deposits treated? A. Add to the company cash ledger balance B. Subtract from the company cash ledger balance C. Add to the bank statement balance D. Subtract from the bank statement balance

From page 4-4 of the VLN, in a bank reconciliation how are outstanding deposits treated? A. Add to the company cash ledger balance B. Subtract from the company cash ledger balance C. Add to the bank statement balance D. Subtract from the bank statement balance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
From page 4-4 of the VLN, in a bank reconciliation how are outstanding deposits treated? A. Add to the company cash ledger balance B. Subtract from the company cash ledger balance C. Add to the bank statement balance D. Subtract from the bank statement balance
Bank Reconciliation Timing differences and/or Errors BANK'S RECORD СOMPANY COMPANY'S RECORD BANK The bank statement represents the bank's record of the company's account at the bank. The company's cash account in the general ledger is the company's АСCOUNT Both records are record of the company's bank keeping track of account. this account. The bank statement shows the ending They should be The cash account shows the ending the same. balance of the account before the bank balance before it is reconciled. It is account is reconciled. It is the balance the balance before reconciliation. before reconciliation. The goal is to get both documents to be the same, by including everything, and fixing errors where they exist. Bank Reconciliation Bank Statement Company's Cash Ledger Balance Before reconciliation Balance Before reconciliation + outstanding deposits - outstanding checks +Notes received/collected by bank +Interest received +/- bank errors -NSF checks -unrecorded debit cards and EFTS -Bank service fees +/- company errors Balance After reconciliation Balance After reconciliation Bank Account (Statement) Company Cash Account (Ledger) |+/- items that are recorded in the Company +/- items that are recorded on the Bank |Cash account (ledger) but HAVE NOT been Statement but HAVE NOT been recorded in the recorded on the Bank statement. Examples: |- outstanding checks + outstanding deposits (deposits in transit) Company Cash account (ledger). For example: |+Notes received/collected by bank +Interest received |-NSF checks |-unrecorded debit cards and EFTS |-Bank service fees Fix errors where they exist Fix errors where they exist The goal is to get both to be the same (by including everything); they both represent the Company's bank account. After the bank reconciliation is completed, make sure to record the changes made to the cash account.
Transcribed Image Text:Bank Reconciliation Timing differences and/or Errors BANK'S RECORD СOMPANY COMPANY'S RECORD BANK The bank statement represents the bank's record of the company's account at the bank. The company's cash account in the general ledger is the company's АСCOUNT Both records are record of the company's bank keeping track of account. this account. The bank statement shows the ending They should be The cash account shows the ending the same. balance of the account before the bank balance before it is reconciled. It is account is reconciled. It is the balance the balance before reconciliation. before reconciliation. The goal is to get both documents to be the same, by including everything, and fixing errors where they exist. Bank Reconciliation Bank Statement Company's Cash Ledger Balance Before reconciliation Balance Before reconciliation + outstanding deposits - outstanding checks +Notes received/collected by bank +Interest received +/- bank errors -NSF checks -unrecorded debit cards and EFTS -Bank service fees +/- company errors Balance After reconciliation Balance After reconciliation Bank Account (Statement) Company Cash Account (Ledger) |+/- items that are recorded in the Company +/- items that are recorded on the Bank |Cash account (ledger) but HAVE NOT been Statement but HAVE NOT been recorded in the recorded on the Bank statement. Examples: |- outstanding checks + outstanding deposits (deposits in transit) Company Cash account (ledger). For example: |+Notes received/collected by bank +Interest received |-NSF checks |-unrecorded debit cards and EFTS |-Bank service fees Fix errors where they exist Fix errors where they exist The goal is to get both to be the same (by including everything); they both represent the Company's bank account. After the bank reconciliation is completed, make sure to record the changes made to the cash account.
Expert Solution
Step 1

Outstanding deposits is an item that has been recorded in the company’s cash book but has not br recotded in bank .

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS