How to draw up a bank reconciliation statement with different beginning balance?

In my year of teaching POA, a lot of pupils had a tendency to overlook the beginning balance of the cash book and bank statement.  So remember, if the starting balance of both the cash book and bank statement are different, you need to find out what transaction need to be removed to make the balances SAME again.  The transaction can either be the depost in transit or cheque not yet presented from the previous months.  If these are the transactions, you can simply tick/cancel it as it should have been done in the previous months.

Question 1

The following cash at bank account was extracted from the books of Jenny Co on

         30 April 2020.

Cash at bank
Date	Particulars	Cheque Number	Debit	Credit	Balance
2020			$	$	$
Apr 1	Balance b/d				7 650	Dr
4	Sales revenue		5 700		13 350	Dr
9	Advertising expense	25040		2 650	10  700	Dr
12	Inventory	25041		5 400	5 300	Dr
16	Minnie Ltd		3 700		9 000	Dr
21	Drawings	25042		300	8 700	Dr
24	Rental income		600		9 300	Dr
27	DonnyTrading	25043		2 400	6 900	Dr
28	Nutty Co.	25044		9 000	2 100	Cr
29	Ray Ltd		1 290		810	Cr
May 1	Balance b/d				810	Cr

         On 5 May 2020 Jenny Co received the bank statement for the month of April 2020

Bank Statement

Date	Particulars	Withdrawal	Deposit	Balance
2020		$	$	$
Apr 1	Balance b/f			8 100	Cr
3	Cheque number 25039	450		7 650	Cr
5	Bank order - Utilities	380		7 270	Cr
8	Cheque deposit		5 700	12 970	Cr
10	Transfer - Westlite  Ltd		2 500	15 470	Cr
12	Cheque number 25040	2 650		12 820	Cr
16	Cheque number 25041	5 400		7 420	Cr
17	Direct deposit – Commission		900	8 320	Cr
18	Cheque deposit		3 700	12 020	Cr
23	Cheque number 25042	300		11 720	Cr
23	Rejected cheque (Deposited 18 Apr)	3 700		8 020	Cr
27	Cheque deposit		600	8 620	Cr
28	Bank charges	50		8 570	Cr

REQUIRED

(a)  Prepare the adjusted cash at bank account for the month of April 2020.
(b)  Prepare the bank reconciliation statement as at 30 April 2020.

By checking on the beginning balances, April 1 2020, cash at bank balance =$7650

Cash at bank
Date	Particulars	Cheque Number	Debit	Credit	Balance
2020			$	$	$
Apr 1	Balance b/d				7 650	Dr

By checking on the beginning balances, April 1 2020, bank statement balance =$8100

Bank Statement

Date	Particulars	Withdrawal	Deposit	Balance
2020		$	$	$
Apr 1	Balance b/f			8 100	Cr
3	Cheque number 25039	450		7 650	Cr

If the balances are different, we needed to check further to see what causes the different.
By looking into the bank statement in detailed, we discovered that if we minus  the cheque number 25039 with an withdrawal of $450, the balance then tally=$7650.  If we further looked into the cash at bank, the earliest cheque recorded starts with the number 25040.  So this cheque 25039 should be the cheque already recorded in the cash at bank last month.  So we can conclude that this is the cheque not yet presented from the previous month.  We can just consider this cheque already reconcile last month and put a tick in it.

Then the rest will follow :
Step 1 : tick all the items that appear in both bank statement and cash at bank
Step 2 to 3 : highlight all that are not tick to put into the updated cash at bank or bank reconciliation statement.

Cash at bank
Date	Particulars	Cheque Number	Debit	Credit	Balance
2020			$	$	$
Apr 1	Balance b/d				7 650	Dr
4	Sales revenue		5 700√		13 350	Dr
9	Advertising expense	25040		2 650√	10  700	Dr
12	Inventory	25041		5 400√	5 300	Dr
16	Minnie Ltd		3 700√		9 000	Dr
21	Drawings	25042		300√	8 700	Dr
24	Rental income		600√		9 300	Dr
27	DonnyTrading	25043		2 400	6 900	Dr
28	Nutty Co.	25044		9 000	2 100	Cr
29	Ray Ltd		1 290		810	Cr
May 1	Balance b/d				810	Cr

         On 5 May 2020 Jenny Co received the bank statement for the month of April 2020

Bank Statement

Date	Particulars	Withdrawal	Deposit	Balance
2020		$	$	$
Apr 1	Balance b/f			8 100	Cr
3	Cheque number 25039	450√		7 650	Cr
5	Bank order - Utilities	380		7 270	Cr
8	Cheque deposit		5 700√	12 970	Cr
10	Transfer - Westlite  Ltd		2 500	15 470	Cr
12	Cheque number 25040	2 650√		12 820	Cr
16	Cheque number 25041	5 400√		7 420	Cr
17	Direct deposit – Commission		900	8 320	Cr
18	Cheque deposit		3 700√	12 020	Cr
23	Cheque number 25042	300√		11 720	Cr
23	Rejected cheque (Deposited 18 Apr)	3 700		8 020	Cr
27	Cheque deposit		600√	8 620	Cr
28	Bank charges	50		8 570	Cr

Answer

Cash at bank account

Date 2020	Details	Debit ($)	Credit ($)	Balance ($)
Apr 30	Balance b/d			810 Cr
30	Utilities expense		380	1 190 Cr
30	Trade receivables - Westlite Ltd	2 500		1 310Dr
30	Commission income	900		2 210 Dr
30	Trade receivables - Minnie Ltd (Dishonoured cheque)		3 700	1 490 Cr
30	Bank charges		50	1 540 Cr
May 1	Balance b/d			1 540 Cr

Bank Reconciliation Statement as at 30 April 2020
	$
Credit balance as per bank statement	8 570
Add: Deposit  in transit
Ray Ltd	1 290
	9 860
Less: cheque not yet presented
Donny Trading	(2 400)
Nutty  Co	(9 000)
Credit balance as per adjusted cash at bank account	(1540)

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