Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud. To determine: To reconcile the bank balance and pass journal entries .

Question

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Answer 1

Question

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

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ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >

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Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.

Answer 2

Question

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

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Answer 3

Question

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

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Answer 4

Question

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

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Answer 5

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

Answer 6

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

Answer 7

Chapter 6, Problem 4PSB

1.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

Answer 8

1.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Particulars	Amount	Particulars	Amount
Bank statement balance	46822.40	Book balance	32878.30
Add: Deposit in transit	9583.10	Add: Bank collection of note receivable	19000
		Error in posting	9
	56405.5		51887.3

Deduct:		Deduct:
Outstanding cheque 1273	4589.30	NSF Cheque	745
Outstanding cheque 1282	400	Collection expenses	20
Outstanding cheque 1242	410.40	Bank service charge	17.50
		Miscellaneous charges	99

Adjusted bank balance	51005.8	Adjusted book balance	51005.8

Answer 13

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

Answer 14

2.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

Answer 15

2.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Answer 16

2.

Expert Solution

Answer 17

2.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Journal entries for company’s books of accounts:

Date	Particulars	Amount	Amount
31 Dec	Cash A/c	9
	To office expense A/c		9
	( Being amount erroneously recorded )

31 Dec	Customer A/c	745
	Bank A/c	17.50
	To Cash A/c		762.5
	( Being dishonored cheque and processing fee recorded)

31 Dec	Bank Charges	99
	To Cash		99
	( Being cheque printing charges recorded)

31 Dec	Cash A/c	19000
	To Customer A/c		19000
	( Being collection by the bank recorded)

31 Dec	Bank Charges	20
	To Cash A/c		20
	( Being bank charges levied recorded)

Answer 20

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same:

Bank charges levied by bank for providing services.
Customers dishonored cheques.
Collection of notes on behalf of client.

Credit Memorandum:

This is as opposite of debit memorandum this denote increased balance in customer account. Following entries may be specified for the same:

Reserved bank charges.
Collecting note behalf of client.

Answer 21

3.

Summary Introduction

Introduction: Bank reconciliation statements means to reconcile entities’ or organization’s bank accounts and its financial statements. By reconciling the bank accounts and financial statements of the organization it outlines the withdrawals and deposits and other activities relating to the bank account which affects the financial status of the organizations. Bank reconciliation is a part of internal control system which helps to detect fraud.

To determine: To reconcile the bank balance and pass journal entries.

Answer 22

3.

Expert Solution

Answer to Problem 4PSB

By bank reconciliation statements organization financial dealings and errors can be seen. Bank reconciliation will make sure of the errors that occurred in bank accounts or financial statements of the organization.

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Debit Memorandum:

By sending the debit memorandum to customers, bank means to reduce the balance available in customer account. As by sending this bank signifies to that customer is unaware of it. Following entries may be recorded for same: