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13 May, 19:09

Jane Co.'s checkbook currently has a balance of $295.10. The bank statement shows a balance of $205.10. The statement revealed interest income of $10.03 along with check charges of $2.95. Jane recorded a $200 check as $150. Deposits in transit were $402.80. Check numbers 85, 88, and 92 for $90.80, $108.10, and $156.82 were not returned with the statement. The reconciled balance is:

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  1. 13 May, 19:17
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    The reconciled balance is: $205.10

    Explanation:

    The first step is to update the Cash Book Account Bank Balance as follows:

    Debit:

    Balance as per Cash Book $295.10

    Interest Income $10.03

    Totals $305.13

    Credit:

    Check Charges $2.95

    Error $50.00

    Balance as per updated Cash Book $252,18

    Totals $305.13

    Then, prepare the Bank Reconciliation Statement as follows:

    Bank Reconciliation Statement

    Balance at Bank as per Cash Book $252,18

    Add Unpresented Cheques

    Cheque 85 $90.80

    Cheque 88 $108.10

    Cheque 92 $156.82 $355.72

    Less Bank Lodgements not yet credited ($402.80)

    Balance as per Bank Statement $205.10

    Therefore the Reconciled Balance is $205.10
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