Bank Reconciliation Four Column Consist of reconciliation beginning of the period cash balances, current period of cash receipt,

current period of cash disbursement, and end of period cash balances. Example: 1. Cash balances as of October 31, 1992, per bank statement was 17,520 2. Cash balance as of October 31, 1992 per Nuggets book was 18,020 3. The total cash receipt per November 1992 bank statement are 96,450; including deposit in transit of 4,200 at October 31 4. Total cash receipts per Nuggets book during November are 95,330 5. Total cash disbursements per bank statement for November are 91,780; including 3,700 the check outstanding at October 31 6. Total cash disbursement per book during November are 92,848 Reconciling items: 1. A deposit of $3,680 was mailed November 30 but does not appear on the bank statement. 2. Check written in November but not charged to the November bank statement are $5,001 3. Nugget has not yet recorded the $600 of interest collected by the bank Nov 20 on Sequioa Co. bonds held by the bank for Nugget 4. Bank service charges of $18 are not yet recorded on Nuggets books 5. One of the Nuggets customers checks for $220 was returned with the bank statement and marked NSF. The bank treated this check as disbursement. 6. Nugget discovered that check #7322, written in November for $131 in payment of an account payable, had been incorrectly recorded in their books as $311 7. A check for Nugent Oil Co. in the amount of $175 accompanied the bank statement that had been incorrectly charged to Nugget Mining Bank Balance and Book Balance to Corrected Balance Form Nugget Mining Company Proof of Cash for November 1992 Denver National Bank-Checking Account Balance Oct, 31 Per bank statement Deposits in transit At October 31 At November 30 Outstanding checks At October 31 At November 30 Bank error-incorrect check charged by bank Correct amount Per books 17,520 4,200 (3,700) November Receipt Disburseme nt 96,450 91,780 (4,200) 3,680 (3,700) 5,001 95,930 95,330 (175) 92,906 92,848 Balance Nov,30 22,190 3,680 (5,001) 175 21,044 20,502

18,020 18,020

Interest collected by bank Error in recording check #7322 Unrecorded service charges at Nov 30 NSF checks returned Correct amount 18,020 Bank to Book Form

600 (180) 18 95,930 220 92,906

600 180 (18) (220) 21,044

Nugget Mining Company Proof of Cash for November 1992 Denver National Bank-Checking Account Balance Oct, 31 Per bank statement Deposits in transit At October 31 At November 30 Outstanding checks At October 31 At November 30 Bank error-incorrect check charged by bank Interest collected by bank Error in recording check #7322 Unrecorded service charges at Nov 30 NSF checks returned Correct amount 17,520 4,200 (3,700) November Disburseme nt 96,450 91,780 Receipt (4,200) 3,680 (3,700) 5,001 (175) 600 (180) 18 18,020 95,330 220 92,848 Balance Nov,30 22,190 3,680 (5,001) 175 600 180 (18) (220) 20,502