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Bank Reconciliation Pointer PLC

This document outlines the bank reconciliation process for Pointer PLC as of April 30, 2012, detailing the adjustments needed for the bank statement and cash book. It includes a step-by-step breakdown of deposits, outstanding checks, and necessary journal entries. The final reconciled balances for both the bank statement and cash book are confirmed to be equal at 9,398.02.

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samuel asefa
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23 views2 pages

Bank Reconciliation Pointer PLC

This document outlines the bank reconciliation process for Pointer PLC as of April 30, 2012, detailing the adjustments needed for the bank statement and cash book. It includes a step-by-step breakdown of deposits, outstanding checks, and necessary journal entries. The final reconciled balances for both the bank statement and cash book are confirmed to be equal at 9,398.02.

Uploaded by

samuel asefa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Bank Reconciliation – Pointer PLC (April

30, 2012)
This document presents a full step-by-step solution for preparing the bank reconciliation
statement for Pointer PLC as of April 30, 2012, including detailed analysis of deposits,
outstanding checks, bank errors, and necessary journal entries.

Step 1: Given Information


Bank Statement (April 2012):
- Opening Balance (Apr 1): 7,947.20
- Deposits and Credits: 10,652.77
- Checks and Debits: (8,232.21)
- Closing Balance (Apr 30): 10,367.76

Depositor’s Records:
- Opening Balance: 7,817.40
- Cash Receipts: 7,829.50
- Total Checks Issued: 8,555.51

Step 2: Items to Adjust


🔹 Items to ADD to Bank Statement:

 • Deposit not recorded by bank (April 29): 510.06

🔻 Items to DEDUCT from Bank Statement:

 • Outstanding Checks:

 - Check #749: 172.75


 - Check #751: 359.60
 - Check #752: 601.50
 - Check #736: 345.95

 • Total Outstanding Checks = 1,479.80

➕ Items to ADD to Cash Book:

 • Notes Collected by Bank: 2,500.00


 • Interest Income: 125.00
 • Total = 2,625.00
➖ Items to DEDUCT from Cash Book:

 • Bank Service Charge: 24.50


 • NSF Check Returned: 311.80
 • Total = 336.30

Step 3: Reconciliation Statements


✅ Bank Statement Reconciliation:

Closing Balance (Apr 30).......................10,367.76


+ Deposit in Transit (Apr 29).................510.06
= Subtotal...................................................10,877.82
- Outstanding Checks (749, 751, 752, 736)....1,479.80
= Adjusted Bank Balance....................9,398.02

✅ Cash Book Reconciliation:

Opening Balance (Apr 1)..........................7,817.40


+ Cash Receipts.........................................7,829.50
- Total Checks Issued.................................8,555.51
= Subtotal.....................................................7,091.39
+ Notes & Interest Collected.....................2,625.00
- Bank Charges + NSF...............................336.30
= Adjusted Cash Book Balance...........9,398.02

Step 4: Journal Entries


1. Bank Collected Note & Interest:

Dr. Cash in Bank.............................2,625.00


Cr. Notes Receivable....................2,500.00
Cr. Interest Income.......................125.00

2. Bank Charges & NSF Check:

Dr. Miscellaneous Expense..................24.50


Dr. Accounts Receivable (NSF)..........311.80
Cr. Cash in Bank..............................336.30

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