BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information.Balance per bank statement, 4/30/20 RM40, 290NSF check returned with 4/30/20 bank statement 1, 450Deposits in transit, 4/30/20 10, 200Outstanding checks, 4/30/20 15, 060Bank service charges for April 60What should be the adjusted cash balance at April 30, 2020?
A
RM33, 920.
B
RM33, 980.
C
RM35, 370.
D
RM35, 430.
Explanation: 

Detailed explanation-1: -A bank reconciliation can be thought of as a formula. The formula is (Cash account balance per your records) plus or minus (reconciling items) = (Bank statement balance). When you have this formula in balance, your bank reconciliation is complete.

Detailed explanation-2: -Bank reconciliation statement is a report which compares the bank balance as per company’s accounting records with the balance stated in the bank statement. It is normal for a company’s bank balance as per the accounting records to differ from the balance as per bank statement due to timing differences.

Detailed explanation-3: -What is a bank reconciliation statement? A bank reconciliation statement is a summary of all the transactions (deposits, withdrawals, extra charges and interest) on a company’s bank account and its equation with its financial records.

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