ABC Company

Bank reconciliation
July 31, 2000

Cash balance according to bank record -------------------------------------------------3359.78

Add: Additions of depositor not on bank statement (deposit in transit) -------------816.20
Ded: Outstanding Checks------#812-------------------1061.00
#878------------------ 435.39
#883------------------- 48.60 __ 1544.99
Adjusted cash balance -----------------------------------------------------------------2630.99
Cash balance according to depositor records---------------------------------------------2549.99
Add: additions by bank not recorded by depositor (Note plus interest collection) ---408
Subtotal---------------------------------------------------------------------------------------2957.99
Ded: NSF checks-----------------------------------------------300
Service charge---------------------------------------------18
Depositor error that overstate cash ledger balance------------9.00 327
Adjusted cash balance-----------------------------------------------------------------------2630.99

B) Journal entries
July 31/ Cash-----------------------408
Notes receivable-----------400
Interest revenue---------------8

Accounts payable-------------300
Cash -----------------300
Miscellaneous administrative expense-----18
Cash-----------------18
Accounts payable ---------9
Cash-------------------9