Company pennsylvania’s bank statement dated December, 31 2015 shows a balance of Rp 200

000 000 The company's cash records on the same date show a balance of Rp 180 000 000.
Following additional information is available:

1. Following checks issued by the company to its customers are still outstanding:

No. 846 issued on Nov 29 Rp 2000 000

No. 875 issued on Dec 26 Rp 1500 000

No. 878 issued on Dec 29 Rp 3000 000

No. 881 issued on Dec 31 Rp 1750 000

2. A deposit of Rp 4750 000 made on Dec 31 does not appear on bank statement.
3. An NSF check of Rp 9750 000 was returned by the bank with the bank statement.
4. The bank charged Rp 3500 000 as service fee.
5. Interest income earned on the company's average cash balance at bank was Rp 20000000
6. The bank collected a note receivable on behalf of the company. Amount received by the
bank on the note was Rp 6500 000. This includes Rp 5000 000 interest income. The bank
charged a collection fee of $1500 000.
7. A deposit of Rp 9000 000 was incorrectly entered as Rp 4750 000 in the company's cash
records.

Prepare a bank reconciliation statement using the above information.

Solution:

Pennsylvania company
Bank Reconciliation
December 31, 2015

Balance as per Bank, Dec 31 Rp 200 000 000

Add: Deposit in Transit 4750 000
204 750 000
Less: Outstanding Checks:
No. 846 issued on Nov 29 2000 000
No. 875 issued on Dec 26 1500 000
No. 878 issued on Dec 29 3000 000
No. 881 issued on Dec 31 Rp 1750 000
Rp 8250 000
Adjusted Bank Balance Rp 196 500 000

Balance as per Books, Dec 31 Rp 180 000 000

Add:
Interest Income from Bank Rp 20 000 000
Note Receivable Collected by Bank Rp 5000 000
Interest Income from Note Receivable Rp 1500 000
Deposit Understated Rp 4250 000
Rp 30 750 000
Rp 210 750 000
Less:
NSF Check Rp 9750 000
Bank Service Fee Rp 3500 000
Bank Collection Fee Rp 1000 000
Rp 14 250 000
Adjusted Book Balance Rp 196 500 000