Chapter 5, Problem 3SEQ

To determine

Introduction:

Bank reconciliation is a process of matching items and amounts in cash balances reported on company's ledger with the balance of cash account reported in the bank statement. The cash balance adjusted after reconciliation is recorded in the balance sheet of the company.

A bank reconciliation has two parts. One of the parts is bank section begins with cash balance as per bank statement and end with the adjusted balance while in second part company section begins with cash balance as per company records and end with the adjusted balance.

To choose:

The correct option that shows the treatment of checks outstanding.