Chapter 10
Cash Controls
300
GENERAL LEDGER
Account: Cash
GL. No. 101
Date
Description
DR CR
Balance
Jun 1 Opening Balance
5,000 DR
Jun 2 Cheque #1
300 4,700 DR
Jun 3 Cheque #2
500 4,200 DR
Jun 10 Cheque #3
700 3,500 DR
Jun 30 Deposit
1,000
4,500 DR
Bank Statement
June 1–June 30, 2016
Date
Description
Withdrawal Deposit Balance
Jun 1 Opening Balance
5,000
Jun 2 Cheque #1
300
4,700
Jun 3 Cheque #2
500
4,200
Jun 10 Cheque #3
700
3,500
______________
Figure 10.14
The balance on the bank statement is $3,500.The balance in the general ledger is $4,500.There was
a deposit of $1,000 on June 30 that was not recorded by the bank. Since the balance is missing from
the bank statement, it should be added to the bank balance as shown in Figure 10.15.
HR Clothing
Bank Reconciliation
June 30, 2016
Ledger
Bank
Balance as per records
$4,500
$3,500
Add:
Outstanding deposit June 30
1,000
Reconciled balance
$4,500
$4,500
______________
Figure 10.15
Notice that the reconciled balances are the same for the bank and the ledger columns.There is no
adjustment required in the ledger because the entry is only in the bank account column of the bank
reconciliation worksheet. The outstanding deposit is a timing difference; it should appear on the
bank statement which includes the following business day (in July). If the deposit does not show
up within one or two business days, further investigation should be made to rule out theft or fraud.
