Question

The bank statement balance is $700.12, and the checkbook balance is $763.12. The bank had a $10.00 service charge. The depositor earned $2.00 in interest. There were two outstanding deposits of $20 and $50. There were two outstanding checks of $10 and $5. Find the balance by reconciling the bank statement and the checkbook.

Answer 1

Checkbook Balance
$763.12
- 10.00 Service Charge (was subtracted from Bank Account but not shown on Checkbook)
+ 2.00 Interest (was added to Bank Statement but not Checkbook
- 20.00 Deposit Outstanding (was added to Checkbook but not Bank Statement)
- 50.00 Deposit Outstanding (was addeded to Checkbook but not Bank Statement)
+ 10.00 Check Outstanding (was written and subtracted from Checkbook but has not yet gone to the Bank
+ 5.00 Check Outstanding (was written and subtracted from Checkbook but has not yet gone to the Bank)
------------------
$700.12 --> Checkbook Reconciled with Bank Statement.

Next, find the true amount in the account as if all deposits and checks and fees and interest had cleared. So ...

Bank Statement
$700.12 (Interest of $2 and Service Charge of $10 has already been processed)
+ 20.00 (Deposit by customer that is outstanding)
+ 50.00 (Deposit by customer that is outstanding)
- 10.00 (Check written that has not cleared the bank)
- 5.00 (Check written that has not cleared the bank)
---------------
$755.12 --> Actual Account Balance when outstanding items clear the bank

Answer 2

thank you so much:)