Bank reconciliation 2 Flashcards
A check for $850 written to a supplier was correctly recorded in the company’s books but was mistakenly recorded by the bank as $580.
Bank error
The bank statement shows a deduction for a previously unknown electronic funds transfer (EFT) payment of $325 to a utility company.
EFT payment (not recorded)
A customer’s check for $1,200 deposited by the company was initially recorded correctly but was later returned by the bank with a notice stating “Refer to Payer” due to a signature issue.
NSF check (with additional investigation needed)
The company’s petty cash custodian deposited $50 in change into the company’s bank account, but the transaction was not recorded in the company’s cash receipts journal.
Unrecorded petty cash deposit
The bank statement includes a debit memo for $75 related to a stop payment order on a check that the company had reissued. The company had not yet recorded the stop payment fee.
Stop payment fee
The bank collected a note receivable of $2,500, including $150 in interest, on behalf of the company. The company only recorded the $2,500 collection and not the interest.
Unrecorded interest income
A deposit made after the bank’s cutoff time on the last day of the month was included in the bank statement but not reflected in the company’s cash balance until the following month.
Deposit in transit
A check written by the company was lost in the mail and never cashed by the payee. The company has not yet issued a stop payment order or reversed the entry.
Outstanding check (potentially stale)
The bank statement includes a credit for a direct deposit from a customer for $900, but the company’s accounts receivable department has no record of this payment.
Unidentified direct deposit
The company discovered that a check it had written and mailed was altered by the payee for a larger amount. The bank paid the altered check.
Fraudulent check (requires legal and accounting investigation)
