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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Students have asked these similar questions

The following information is available to reconcile Severino Co.’s book balance of cash with its bank statement cash balance as of December 31. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40. b. Check No. 1242 for $410.40, Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are outstanding checks as of December 31. c. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in payment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions. e. The bank statement shows that the bank collected $18,980 cash on a note receivable for the company. Severino did not record this transaction before receiving the statement.…

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $24,869 debit balance, but its July bank statement shows a $27,258 cash balance. b. Check No. 3031 for $1,520, Check No. 3065 for $536, and Check No. 3069 for $2,288 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270. d. The July bank statement shows the bank collected $5,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been…

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company’s Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance. b. Check No. 3031 for $1,482, Check No. 3065 for $382, and Check No. 3069 for $2,281 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,250. d. The July bank statement shows the bank collected $7,955 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been…

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: