Answer:
Donney actually have $1,577 at August 31, 2014
Explanation:
Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps
Step 1
<em>Update the Cash Book (Bank Column) Balance</em>
<u>Cash Book (Bank Column)</u>
Debit :
Balance as at August 31 $1,620
Rent collection $375
Total $1,995
Credit :
Service charge $9
Dishonored Checks $137
Printing Charge $20
Error : Understatement $252
Balance as per updated CB $1,577
Total $1,995
Step 2
<em>Prepare a Bank Reconciliation Statement</em>
<u>Bank Reconciliation Statement as at August 31</u>
Balance at Bank as per updated Cash Book $1,577
Add Unpresented Checks $756
Less Lodgements not yet credited ($1,695)
Balance as per Bank Statement $638
Conclusion :
Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.
