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

Please need answer the general accounting question not use ai

Groot Co. (GC) sells $1,200,000 of 6-year, 10% bonds at par plus accrued interest. The bonds are dated January 1, 2026 but due to market conditions are not issued until May 1, 2026. Interest is payable on June 30 and December 31 each year. The market rate of interest at time of issue is the same as the stated rate. Required The issuance of the bonds on May 1, 2026. Assume that GC has adopted a policy of crediting accrued interest payable for the accrued interest on the date of sale. Payment of interest on June 30, 2026. Payment of interest on December 31, 2026.

1. Define working capital and explain its importance in financial health and liquidity management. 2. Assess how the matching concept and accrual basis affect the reporting of current assets and liabilities. 3. Using a hypothetical balance sheet (you may create one), identify at least 5 current assets and 5 current liabilities and analyze how changes in these elements affect liquidity ratios. 4. Recommend at least two strategies VinGrenDom Ltd. can implement to optimize working capital.

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: