Bank Reconciliation Problems
1.
From the following information, prepare a Bank Reconciliation Statement dated
November 30, 20--, for the Canadian Products Company. The bank statement shows a
balace of $3,182.60, but the company’s records show a balance of $3,310.06. By
comparing the bank’s figures with the company’s cash journals, it is found that the
following items are not entered in both the statement and the journals:

outstanding cheques:



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2.
No. 187 for $16.50
No. 189 for $200
No. 195 for $90.40 and
No. 208 for $325;

service charge of $5.36 for the month

a cheque for $754 signed by a customer, Mrs. H. E. James was deposited, but returned
marked “Not Sufficient Funds.”
Prepare a Bank Reconciliation Statement, dated July 31, 2---, for the Canadian Products
Company using the following information. The bank statement shows a balance in the
company’s account of $4,354.22, but the company’s own records show a balance of
$3,822.32. After comparing the figures in the statement with the entries in the company’s
cash journals, the company’s accountant uses the following amounts to reconcile the
balances:

cheques outstanding at the end of the month were:
 No. 705 for $51.69
 No. 709 for $207.38 and
 No. 711 for $195.07;
3.

the bank deducted service charges of $3.24;

the bank made an error by recording a company cheque no. 701, for $290.43, as
$209.43.
Prepare a Bank Reconciliation Statement, dated January 31, 2---, for the Gallinger’s Office
Products using the following information. The bank statement shows a balance in the
company’s account of $9,606.25, but the company’s own records show a balance of
$8,950.17.
The unchecked items are as follows, as shown on the documents returned to you by the
bank:

An NSF cheque from R. Cart for $102.90

A service charge of $20 for the R. Cart NSF cheque

Interest drawn from the account on a loan owed by Galliger (your employer). The
interest amounts to $78.25

A monthly service charge of $12

A second NSF cheque from L. Wright Co. for $80.52

A service charge on this NSF cheque of a further $20

A cheque that was issued for $301.02 which should have been issued for $238.02.
The number for the credit memo issued to the customer was 30102 and was
incorrectly shown as the amount on the cheque issued.

The Series A Bond held on Calico Corporation was redeemed for $1,000 and
deposited to the Gallinger account upon instructions to the bank

The interest earned on bonds held on Calico Corporation was deposited to the
Gallinger account upon instructions. It amounted to $196
The cheque stubs reveal that the following items have not been processed by the bank:



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4.
cheque # 16 for $20.75 has not been processed by the bank
cheque #18 for $110 has not been processed.
cheque #25 for 16.11 has not been processed
A deposit made by night depository on Jan. 31 in the amount of $310.11 has not
been recorded by the bank
Prepare the April reconciliation statement for K. Martin Painting Contractors using the
following information:
Company Records

Cheque record balance $1,970.11

these cheques are recorded in the cheque record but not on the statement:
 No. 161 for $49.50,
 No. 170 for $150,
 No. 176 for $75

a deposit for $400 was recorded in the cheque record on April 30 but did not appear on
the bank statement
Bank Statement

Bank statement balance is $1,829.86

bank service charges of $14.75 are shown on the bank statement
5.
Prepare the May reconciliation statement for K. Martin Contractors using the following
information:

cheque record balance $2,060.51

bank statement balance $1,674.51

these cheques were recorded in the cheque record but did not appear on the bank
statment:

 No 176 for $75,
 No. 193 for $297.30, and
 No. 199 for $924.60
a deposit for $1,910 dated May 31 was recorded in the cheque record but did not
appear on the bank statement

Service charges of $15.75 are shown on the bank statement

a cheque for $37.50 has been cashed (correctly) by the bank but was incorrectly
recorded in the cheque record as $375.50

an NSF cheque for $95.15 appeared on the bank statement as a returned item. It was
deducted by the bank. It had been received from J. Barkley and was recorded in the
company’s cheque record as a deposit.
Additional Bank Reconciliation Statements
1.
At the end of August, Hunter’s Hobby Shop has a balance of $1,254.40 in the cheque
record. The statement received from the bank shows a balance of $1,583.75.
The bank statement contains a deduction of $16.00 for service charges. A comparison of
the cheques issued in Hunter’s cheque record and the cheques cashed on the statement
indicates that cheque No. 72 for $48.60, cheque No. 86 for $250, and cheque No. 89 for
$46.75 are outstanding.
Prepare a bank reconciliation statement dated August 31.
2.
At the end of September, Hunter’s has a balance of $865.84 in the cheque record. The
bank statement shows a balance of $1,578.40. The bank statement contains a service
charge deduction of $12.54 and a deposit made on September 15 for $400. This deposit is
not recorded in Hunter’s cheque record. Cheque No. 92 for $48.60, cheque No. 94 for
$89, and cheque No. 95 for $187.50 are outstanding.
Prepare the September reconciliation statement.