BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Soft Water Company gathered the following reconciling information in preparing its July bank reconciliation:Cash balance per books, 7/31 RM23, 500Deposits in transit 1, 200Notes receivable and interest collected by bank 4, 800Bank charge for check printing 80Outstanding checks 8, 000NSF check 860The adjusted cash balance per books on July 31 is
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RM19, 360.
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RM20, 560.
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RM27, 360.
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RM28, 560.
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Explanation:
Detailed explanation-1: -Answer and Explanation: Option C is correct. Deposits in transit would be added to the balance per bank statement in a bank reconciliation.
Detailed explanation-2: -So, when preparing a bank reconciliation if balance as per bank statement is the starting point then, deposits in transit and cheques not collected would have to be added.
Detailed explanation-3: -Explanation: Service charges would be deducted from the balance per books on a bank reconciliation.
Detailed explanation-4: -In a bank reconciliation, the most common reconciling items are: Deposits in transit. Deposits in transit are deposits made after the bank statement was issued but have already been recorded in the books. Outstanding checks.
There is 1 question to complete.