Jane Co.'s checkbook currently has a balance of $295.10. The bank statement shows a balance of $205.10. The statement revealed interest income of $10.03 along with check charges of $2.95. Jane recorded a $200 check as $150. Deposits in transit were $402.80. Check numbers 85, 88, and 92 for $90.80, $108.10, and $156.82 were not returned with the statement. The reconciled balance is:

The reconciled balance is: $205.10

Explanation:

The first step is to update the Cash Book Account Bank Balance as follows :

Debit :

Balance as per Cash Book                                              $295.10

Interest Income                                                                   $10.03

Totals                                                                                 $305.13

Credit:

Check Charges                                                                    $2.95

Error                                                                                    $50.00

Balance as per updated Cash Book                                $252,18

Totals                                                                                  $305.13

Then, prepare the Bank Reconciliation Statement as follows :

Bank Reconciliation Statement

Balance at Bank as per Cash Book                                   $252,18

Add Unpresented Cheques

Cheque 85                                                      $90.80

Cheque 88                                                      $108.10

Cheque 92                                                      $156.82      $355.72

Less Bank Lodgements not yet credited                        ($402.80)

Balance as per Bank Statement                                        $205.10

Therefore the Reconciled Balance is $205.10

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