Question

The bank statement of Ali Co. indicated a current balance of $32,900.10. The current checkbook balance

indicated a balance of $34,509.11. In the reconciliation process a deposit in transit for $6,821.11 was !

discovered. Check number 600 for $3,988.33 was outstanding. The statement also revealed an NSF of $110.11

along with interest earned by Ali of $1,333.88. The reconciled balance is:

Answer 1

The reconciled balance =32900.10 which tallies with bank balance.

Explanation:

Given that the bank statement of Ali Co. indicated a current balance of $32,900.10

But the cheque book balance is only 34509.11

We do reconciliation as follows:

Cheque book balance 34509.11

Less: Deposit in transit not cr. 6821.11

Net balance 27688.00

Add: cheque no 600 not presented 3988.33

31676.33

Add: Interest earned by Ali 1333.88

Less: NSF 110.11

Balance as per bank 32900.10

The reconciled balance =32900.10 which tallies with bank balance.