The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): Balance, April 1, Current Year BANK STATEMENT Checks Deposits Balance $31,800 $36,900 68,700 1,270 69,970 $45,400 24,570 280 24,290 130 24,160 24,160 Deposits during April Interest collected Checks cleared during April NSF check-A. B. Wright Bank service charges Balance, April 30, Current Year Cash (A) Debit Credit April 1 Balance April Deposits 23,900 April Checks written 42,300 43,800 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,300 (including $4,700 written before and $1,600 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.