Bank reconciliation... why doesn't the cash in bank and bank reconciliation balances match?After the balance of $955, the two totals are $1,216 | |
Bank reconciliation... why doesn't the cash in bank and bank reconciliation balances match?After the balance of $955, the two totals are $1,216 | |
I figured out the reconciliation, but it depends on the bank entry of the Jul 30 deposit for 33: If it is a correct entry, then it should be an adjusting entry to the ledger balance; if it is an incorrect entry that the bank needs to fix then it would be an adjustment to the bank balance. I'll show you my calculations assuming that it is an adjusting entry to the ledger balance:
Ledger:
beginning balance - 802
cash receipts - 416
cash payments - (313)
ending balance (before adjustments) - 905
adjustments:
interest - 50
bank charges - (6)
unrecorded deposit - 33
=adjusted ledger balance - 982
bank statement:
balance 955
uncleared checks (no. 104 and 106) - (58)
uncleared deposit - 85
=adjusted bank balance - 982
Ignore the number 1216 - that is simply the number the bank uses as the total number of credits, including beginning balance, during the month - it is not a balance.
The number 879 you came up with appears to be because you reconciled to the beginning ledger balance instead of the ending ledger balance - you didn't include the deposits and payments already recorded during the month.