Example #1: ABC Corp, has a balance of $2,000 as per bank statement as at 31st December 2021. However, the balance as per cash book as at 31st December 2021 is $2,210. Transactions details are the following: 1. Acheck of $500 was deposited, but it is not yet processed by the bank. 2. Bank charges of $60 were recorded in the bank statement, but not in the cash book. 3. Checks worth $300 were issued, but not presented. 4. Bank interest of $50 was recorded in the bank statement, but not in the cash book.+ Solution #1: Bank Reconciliation Statement Format Coe TOTAL urs) PL EOL (9) (s) Balance as per passbook 2000 Add: Check 500 Bank charges 60 560 Less: Check issued 300 Bank interest 50 350 Balance as per Cash book 2210A Bank Reconciliation as at 31 December 2021. * Cash balance per bank statement * Deposit in transit * Outstanding checks * Adjusted cash balance per bank * Cash balance per books * Bank interest * Bank service charge * Adjusted cash balance per books $ 2,000 500 -300 2,200 $ 2,210 50 2,200Example #2: JPN & Co, has a balance of $20,000 as per passbook as on 3st December 2021. The transaction details are as follows 1. Three checks of $1000, $1500, $1750 were deposited in the bank on 30st December 2021 but were recorded in the bank statement on January 2022. 2. Acheck of $1000 was issued on 31st December 2021, was not processed 3. Adividend of $500 on stocks was credited to the bank account, but not recorded in the cash book. 4, Adirect deposit of $600 was made in a bank account by a customer, which was not recorded in the cash book. 5. Bank charges of $60 were entered only in the bank passbook. 6. Balance as per cash book on 31st December 2021 was $22,210.* Solution ink Reconciliation Statement (BRS) Format TOTAL Peery EO EN (s) (s) Balance as per passbook 20,000 Add: Checks deposited 4250 (1000+1500+1750) Bank charges recorded in passbook 60 4310 Less: Check issued, but not presented 1000 for payment Dividends collected by bank 500 Direct deposit not recorded in 600 2100 cash book Balance as per Cash book 22,210* Cash balance per bank statement * Deposit in transit * Outstanding checks * Adjusted cash balance per bank * Cash balance per books * Dividend * Direct Deposit * Bank service charge * Adjusted cash balance per books $ 20,000 4,250 -1,000 23,250 $ 22,210 500+ Example #3: Markson’s & co. has a difference in balance as per cash book and bank statement as at 31st December 2021. ‘The transaction details are as follows 1 Balance as per bank statement as at 31st December 2021 is $5,000. Balance as per the cash book is $1,650. Checks of $2000 and $1000 issued as at 31st December 2023, but not yet cleared Insurance paid by the bank is $200. It is not yet recorded in the cash book, An outgoing check of $1,000 was recorded twice in the cash book. It is accurately recorded in the bank statement. Payment of a $500 check is recorded twice in the bank statement. Dividends received $600 recorded only in the bank statement and not in the bank statement. ‘Accheck of $500 was deposited on 31st December 2021, but it is not collected. Bank charges of $50 were debited, itis only recorded in the bank statement.+ Solution #3: Bank Reconciliation Statement (BRS) Format Pca Balance as per passbook Add: Insurance Premium paid by bank Check recorded twice in passbook Check deposited but not yet processed Bank charges debited onl passbook Less: Checks Issued but not presented for payment (2000+1000) Check recorded twice in cash book Dividend received recorded only in passbook Balance as per Cash book TTT Pore (s) 200 500 500 50 3000 1000 600 TOTAL, Pry (s) 1250 4600Cash balance per bank statement Deposit in transit Outstanding checks Bank Error Adjusted cash balance per bank Cash balance per books Insurance paid Error check recorded twice Dividend received Bank service charge Adjusted cash balance per books $5,000 500 -3,000 500 3,000 $ 1,650 -200 1,000 600 -50 3,000The bank statement for Laird Company, shows a balance per bank of £15,907.45 on April 30, 2017. On this date the balance of cash per books is £11,589.45. Using the four reconciliation steps, Laird determines the following reconciling items. Prepare bank reconciliation as at April 30, 2017. Step 1. Deposits In Transit: April 30 deposit (received by bank on May 1). £2,201.40 Step 2. Outstanding Checks: No. 453, £3,000.00; no. 457, £1,401.30; no. 460, £1,502.70. 5,904.00 Step 3. Errors: Laird wrote check no. 443 for £1,226.00 and the bank correctly paid that amount. However, Laird recorded the check as £1,262.00. 36.00 Step 4. Bank Memoranda: a. Credit—Collection of note receivable for £1,000 plus interest earned £50, less bank collection fee £15.00 1,035.00 b. DebitNSF check from J. R. Baron for £425.60 425.60 C. Debit—Charge for printing company checks £30.00 30.00A Bank Recon: nas at April 30. Cash balance per bank statement Deposit in transit Outstanding checks Adjusted cash balance per bank Cash balance per books Collection of notes receivable Error in check No. 443 NSF check Bank service charge Adjusted cash balance per books £15,907.45 2,201.40 (5,904.0 £12,204.85 £11,589.45 1,035.00 36.00 (425.60) (30.00) £12,204.85* Cash is reported last in some balance sheets because it follows a liquidity sequence (least > most liquid), emphasizing how other assets convert into cash over time. However, presentation can vary by company and accounting standards.Accounting Textbooks (Fundamentals) "Financial Accounting" by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso * Covers cash management, internal controls, and bank reconciliation in detail "Principles of Accounting" by Belverd E. Needles and Marian Powers + Includes step-by-step reconciliation processes with examples. “Accounting Principles" by Weygandt, Kimmel, and Kieso + Explains cash controls, reconciling items, and common discrepancies.