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15 October, 14:25

Damon Company receives its monthly bank statement, which reports a balance of $2,000. After comparing this to the company's cash records, Damon's accountants determine that deposits outstanding total $4,200 and checks outstanding total $4,450. Required: Calculate the reconciled bank balance for cash. (Amounts to be deducted should be indicated with a minus sign.)

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  1. 15 October, 17:06
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    The reconciled bank balance for cash is $1,750.

    Explanation:

    Bank reconciliation statement is prepared to reconcile the bank statement of a company to the balance per cash book (general ledger). The discrepancies between the two books are as a resulting of timing of transactions, outstanding checks, direct credit transfers to bank, among others.

    The following is a way of reconciling the balance per bank statement to the cash book:

    Damon Company

    Bank reconciliation statement

    Balance per bank statement $2,000

    Add: Outstanding deposit $4,200

    Less: Outstanding checks ($4,450)

    Balance per cash book $1,750

    Therefore, the reconciled bank balance for cash is $1,750.
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Home » Business » Damon Company receives its monthly bank statement, which reports a balance of $2,000. After comparing this to the company's cash records, Damon's accountants determine that deposits outstanding total $4,200 and checks outstanding total $4,450.
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