Reference no: EM132847455
Problem - Your bank manager has requested an explanation regarding your bank account. He has advised you are overdraft by $130,000 as of today - January 31, 2021 and wants the negative balance covered immediately. You respond that your general ledger shows a cash balance of $350,000. Knowing that the only way to solve the problem is to prepare a bank account reconciliation as at January 31, 2021 you have your staff find and present the following information for analysis:
Loan payment processed by bank January 27 but not by company - $405,000
Bank loan interest processed January 27 by bank not in company records - $40,000
Company deposit made on last day after banking hours - $290,000
Cheques processed by bank and company - $300,000
Deposits processed by company and bank - $510,000
Cheques issued by company not yet cleared bank - $360,000
January 31 EFT supplier payments not processed by bank until February 1 - $35,000
Bank cash transfer inbound January 30 processed by bank on February 1 - $245,000
Customer cash transfer to bank January 30 but not in company records - $105,000
Required - Prepare the detailed bank reconciliation to advise the bank as to what the balance is.