Answer:
Bank Reconciliation Statement:
<u>Balance as per bank Statement $9,100</u>
Balance as per Cash Book: $6,830
Less: Bank Charges: $(10)
Add: Note Collection in bank: <u>$420</u>
Adjusted cash book balance $7,240
Add: Outstanding Checks $2,460
Less: Uncleared Deposits <u>$600</u>
<u>Balance as per cash book: $9,100</u>
Explanation:
Starting point to prepare bank statement is to calculate adjusted cash bank balance by making transactions recorded in bank but not in cash book i.e bank charges and direct deposits.
After that timing differences are adjusted for checks sent for payment but not presented yet in bank to be paid often know as un presented checks and uncleared deposits.