Bank Reconciliation Exercises Solutions
Exercise 1 Solution
Bank Reconciliation Statement for Company A as at 31st July 2006
Particulars Amount ($)
Balance as per bank statement at 31st July 55,262
2006
Add: Deposits in transit / Uncredited 1,300
deposits
Subtotal 56,562
Less:
Unpresented cheques:
- Check No 6661 dated July 20th (380)
- Check No 6662 dated July 27th (670)
Adjusted bank balance at 31st July 2006 55,512
Balance as per bank account at 31st July 55,597
2006
Add: Correction for Check no 6666 180
(Overstated amount)
Subtotal 55,777
Less:
Bank service charge (55)
Dishonored check from customer ABC (210)
Adjusted cash balance at 31st July 2006 55,512
This completes Exercise 1, with both the adjusted bank and cash balances equaling $55,512.
Exercise 2 Solution Explanation
Exercise 2 Solution:
Without specific transaction details from Exercise 2, here is the standard approach for
solving bank reconciliation:
1. Identify the balance as per the bank statement and the company's cash book at the given
date.
2. Adjust the bank balance by adding deposits in transit and deducting outstanding checks.
3. Adjust the cash book balance by adding items like bank credits not yet recorded and
deducting items like bank charges, dishonored checks, or any correction of errors.
4. Ensure both adjusted balances match, confirming the reconciliation.
