For each of the following errors, describe to a recently hired bookkeeper how it would be shown on cash reconciliation:
• The bank recorded a deposit of $200 as $2,000.
• The company’s bookkeeper mistakenly recorded a deposit of $530 as $350.
• The company’s bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount.
• The bank statement shows a check written by the company for $255 was erroneously paid (cleared the account) as $225.
• The bookkeeper wrote a check for $369 but erroneously wrote down $396 as the cash disbursement on the company’s records.
Balance per bank Balance per books
add to deduct from add to deduct from
1. The bank recorded a deposit of $200 as $2,000. $ (1,800)
2. The company’s bookkeeper mistakenly recorded a deposit of $530 as $350. $ 180
3. The company’s bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and recorded the deposit for the correct amount.
$ 225
4. The bank statement shows a check written by the company for $255 was paid by the bank for $225 in error.
$ (30)
5. The bookkeeper wrote a check for $369 but erroneously wrote down $396 as the cash disbursement on the company’s records. $27
1) $2,000 - $200 = $1,800 – to be added to the balance per bank
2) $530 - $350 = $180 – to be added to the balance per books
3) $250 - $25 = $225 - to be added to the balance per books
4) $255 - $225 = $30 – to be deducted from balance per bank
5) $396 - $369 = $25 – to be added to balance per books
Total cash to added is $1,927
1. Bank recorded a deposit of $200 as $2000:Recall that bank reconciliation is a report prepared by the company to compare the bank statement with the company’s records. This report is prepared after receiving the bank statement. The balance per bank is the...