Sales And Financing

For each error, describe to a recently hired bookkeeper how it would be shown on a cash reconciliation.

Bank Company

Recorded Actual Recorded Actual

deposit 2000 200

200 200

deposit 530 350

530 530

payment 250 25

250 250

check 225 255

255 255

check 369 396

369 369

1. The bank recorded a deposit of 200 as 2000. This is an error on behalf of the bank. The bank will credit the correct amount. (A deduction to the balance per bank)

2. The company recorded a deposit as 350 that was actually 530. This error is on behalf of the company. The company will debit the correct amount. (An addition to the balance per company)

3. The payment of 250 was written down as 25 on the deposit slip. Bank caught error and recorded right amount. The error was on the behalf of the company. The company will debit the correct amount of 250. (An addition to the balance per company)

4. The bank cleared a check for the amount of 255 as 225. This error was made on behalf of the bank. The bank will credit the correct amount. (A deduction to the balance per bank)

5. The bookkeeper wrote a check down as 396 when the payment was actually 369. This error was made on behalf of company. The company will credit its account for the correct amount. (A deduction to the balance per company)