The bank statement balance is $700.12, and the checkbook balance is $763.12. The bank had a $10.00 service charge. The depositor earned $2.00 in interest. There were two outstanding deposits of $20 and $50. There were two outstanding checks of $10 and $5. Find the balance by reconciling the bank statement and the checkbook

The balance by reconciling the bank statement and the checkbook = $755.12

Step-by-step explanation:

Given:

Checkbook Balance = $763.12

The bank had $10.00 Service Charge.

This means this amount was subtracted from Bank Account but not shown on Checkbook.

The depositor earned $2.00 in interest.

This means + 2.00 Interest was added to Bank Statement but not Checkbook.

There were two outstanding deposits of $20 and $50.

This means - 20.00 was added to Checkbook but not Bank Statement and also - 50.00 was added to Checkbook but not Bank Statement.

There were two outstanding deposits of $20 and $50.

This means + 10.00 was written and subtracted from Checkbook but has not yet gone to the Bank and also + 5.00 was written and subtracted from Checkbook but has not yet gone to the Bank.

Now,

$700.12 = Checkbook Reconciled with Bank Statement.

Therefore,

The true amount in the account as if all deposits and checks and fees and interest had cleared.

Bank Statement

= $700.12 (Interest of $2 and Service Charge of $10 has already been processed) + 20.00 (Deposit by customer that is outstanding) + 50.00 (Deposit by customer that is outstanding) - 10.00 (Check written that has not cleared the bank) - 5.00 (Check written that has not cleared the bank)

= $755.12

∴ Actual Account Balance when outstanding items clear the bank = $755.12.