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Book To Bank Method

This document compares the book to bank method and adjusted balance method for reconciling a company's book balance with its bank balance. Under the book to bank method, various adjustments are made to the book balance each month to arrive at the bank balance. The adjusted balance method starts with the unadjusted book and bank balances, and makes adjustments to both balances to arrive at the same adjusted balance for both at the end of each month.

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elsana philip
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388 views

Book To Bank Method

This document compares the book to bank method and adjusted balance method for reconciling a company's book balance with its bank balance. Under the book to bank method, various adjustments are made to the book balance each month to arrive at the bank balance. The adjusted balance method starts with the unadjusted book and bank balances, and makes adjustments to both balances to arrive at the same adjusted balance for both at the end of each month.

Uploaded by

elsana philip
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A.

Book to Bank Method


Disbursemen
  Nov. 30 Receipts t Dec. 31
Book Balance 227,000 270,000 407,000 90,0000
Bank charges
November (2,000) (2,000)
December 3,000 (3,000)
Collections by bank not
recorded to book
November 100,000 (100,000)
December 120,000 120,000
Check of another company
erroneously charged by the
bank
NSF Checks returned
November (5,000) (5,000)
December 7,000 (7,000)
Error
Deposit in Transit
November (200,000) 200,000
December (120,000) (120,000)
Outstanding checks
November 80,000 80,000
December (60,000) 60,000
Error – bank debits
November (10,000) 10,000
December 20,000 (20,000)
Error – bank credits
November 40,000 40,000
December 30,000 30,000
NSF Checks Redeposited 10,000 10,000
Bank Balance 230,000 420,000 500,000 150,000
B. Adjusted Balance Method
Disbursemen
  Nov. 30 Receipts t Dec. 31
Unadjusted Book Balance 227,000 270,000 407,000 90,000
Bank charges
November (2,000) (2,000)
December 3,000 (3,000)
Collections by bank not
recorded to book
November 100,000 (100,000)
December 120,000 120,000
Check of another company
erroneously charged by the
bank
NSF Checks returned
November (5,000) (5,000)
December 7,000 (7,000)
Error
Adjusted book Balances 320,000 290,000 410,000 200,000

Disbursemen
Nov. 30 Receipts t Dec. 31
Unadjusted Bank Balance 230,000 420,000 500,000 150,000
Deposit in Transit
November 200,000 (200,000)
December 120,000 120,000
Outstanding checks
November (80,000) (80,000)
December 60,000 (60,000)
Bank debits error
November 10,000 (10,000)
December (20,000) 20,000
Bank credits error
November (40,000) (40,000)
December (30,000) (30,000)
NSF checks returned;
redeposited (10,000) (10,000)
Adjusted Bank Balances 320,000 290,000 410,000 200,000

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