courses › Bookkeeping

Match your books to the bank statement and find the true cash balance.

In your head, jot if needed · no calculator why?

Learn first (about 3 minutes)

Opens at level 27.

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Builds on: Journal Entries (not open yet)

skills · practice stats

From rounds of this course only: box, review and trial answers are left out. Once a skill has 40 tries, it compares your first 20 tries with your last 20.

• Corrected ledger balance par 19 s not tried yet

  worked example

  The ledger shows $9,215. The bank statement includes $2 of interest earned and a $1,760 customer check that bounced, neither of which is in the ledger yet. What is the corrected ledger cash balance?

  Answer: $7,457.00

  1. Record what the bank already knows: $9,215 + $2 (interest) − $1,760 (bounced check) = $7,457.
  2. The interest is recorded as income. The bounced check goes back into accounts receivable: the customer still owes it.

• Adjusted bank balance par 19 s not tried yet

  worked example

  The bank statement shows $2,020. A $650 deposit is still in transit, and checks totaling $600 haven't cleared. What is the adjusted bank balance?

  Answer: $2,070.00

  1. Adjusted bank = statement + deposits in transit − outstanding checks
  2. = $2,020 + $650 − $600 = $2,070.

• Adjust the books or the bank side? par 14 s not tried yet

  worked example

  The bank paid $1,075 of interest into the account, and you haven't recorded it. Which side of the reconciliation gets adjusted?

  1. No adjustment needed
  2. Adjust the bank side
  3. Adjust both sides
  4. Adjust the ledger (book) side

  Answer: Adjust the ledger (book) side

  1. Items the bank hasn't seen yet, and the bank's own mistakes, adjust the bank side. Items the bank knows about that you haven't recorded (fees, interest, bounced checks, your own typos) adjust the ledger.
  2. The bank already knows about this and your books do not, so the ledger side changes.

• Find the true cash balance par 25 s not tried yet

  worked example

  The ledger shows $12,145; the bank statement shows $13,760. There's an unrecorded $85 bank fee, a $1,940 check that hasn't cleared, and a $240 deposit in transit. What is the true cash balance?

  Answer: $12,060.00

  1. Ledger side: $12,145 − $85 = $12,060.
  2. Bank side: $13,760 + $240 − $1,940 = $12,060.
  3. The two sides match, so the books reconcile.

rest ladder

Win 3 of your last 4 rounds and the course rests. A win is 90% right, within 2× the round's par. Pass the review when it comes back and the next rest is longer.

1. 1 day
2. 3 days
3. 7 days
4. 14 days
5. 30 days
6. 60 days
7. mastered · every 90 days

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