Indigo Lansbury Company deposits all receipts and makes all payments by check. T
ID: 2544531 • Letter: I
Question
Indigo Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records June 30 Bank Reconciliation Balance per bank Add: Deposits in transit Deduct: Outstanding checks Balance per books $36,400 8,008 (10,400 ) $34,008 Month of July Results Balance July 31 July deposits July checks July note collected (not included in July deposits) July bank service charge July NSF check from a customer, returned by the bank (recorded by bank as a charge) Per Bank $44,980 26,000 20,800 5,200 78 1,742 Per Books $48,100 30,212 16,120Explanation / Answer
Solution:
Indigo Lensbury Bank Reconciliation - July 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $44,980.00 Ending Balance as per cash books $48,100.00 Additions: Additions: Outstanding cash receipt ($30,212 - $26,000 + $8008) $12,220.00 Note collected $5,200.00 Deductions: Deductions: Outstanding Checks ($16120 + $10,400 - $20,800) $5,720.00 NSF Cheque $1,742.00 Service Charge $78.00 Up to date cash balance as per bank $51,480.00 Up to date cash balance as per books $51,480.00