Brett White operates a roller skating? center, Roll AroundRoll Around USA. He ha
ID: 2391886 • Letter: B
Question
Brett White operates a roller skating? center, Roll AroundRoll Around USA. He has just received the monthly bank statement at MayMay
31
from??
RidgewayRidgeway
National? Bank, and the statement shows an ending balance of
$ 725$725.
Listed on the statement are an EFT rent collection of
$ 315$315?,
a service charge of
$ 8$8?,
two NSF checks totaling
$ 95$95?,
and
aa
$ 9$9
charge for printed checks. In reviewing his cash? records,
WhiteWhite
identifies outstanding checks totaling
$ 611$611
and
a Maya May
3131
deposit in transit of
$ 1 comma 805$1,805.
During
MayMay?,
he recorded a
$ 310$310
check for the salary of a? part-time employee as
$ 31$31.
White'sWhite's
Cash account shows
a Maya May
3131
balance of
$ 1 comma 995$1,995.
Requirement
1. How much cash does
WhiteWhite
actually have at
May 31May 31?,
20162016??
Explanation / Answer
Solution :
Cash balance white actually have on may 31, 2016 = $1,919
Bank Reconciliation - May 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $725.00 Ending Balance as per cash books $1,995.00 Additions: Additions: Outstanding cash receipt $1,805.00 EFT Rent Collection $315.00 Deductions: Deductions: Outstanding Checks $611.00 NSF Cheque $95.00 Printing check charges $9.00 Service Charge $8.00 Incorrect recording of salary check ($310 - $31) $279.00 True cash balance as per bank $1,919.00 True cash balance as per books $1,919.00