Use the following information to prepare a bank reconciliation for Larkin Company at August 31: (1) Cash account balance, August 31, $10,335.30. (2) Bank statement balance, August 31, $12,380.50. (3) Deposits in transit, $960.00. (4) Outstanding checks, August 31, $3,190.20. (5) Service charge on bank statement not recorded in books, $25.00. (6) Bank error-another company's check charged on Larkin Company's bank statement, $250.00 (7) Check for repairs expense, $670.00, incorrectly recorded in books as $760.00.

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Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.