Blueprint Connection: Cash and Bank Reconciliation Cash and Cash Controls Cash includes coins, paper currency, checks, money orders, and money deposited with a financial institution that the company can withdraw at any time. The key to classification of an amount as cash is that it be readily available to pay debts. Cash is a reported on the Cash also includes tems properly classified as cash equivalents. These are limited to Investments that are readily convertible to known amounts of cash and have an original maturity to the investor of three months or less. Bank Reconciliation A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger) Allez Company's monthly bank statement shows an account balance of $6239.24. The cash balance in its ledger is $5244.95. A thorough bank reconciliation investigation yields the following information: The bank erroneously deducted $366.21 from the company's account when the actual amount of a check written by the company was $336.21. The company erroneously recorded a check it wrote for $350.58 as $516.99 The company recently made a $607.42 deposit that has not yet been reflected on the bank statement. The bank collected a $590.00 note receivable, plus $14.00 in interest, which has not been recorded in the company's records. Bank service charges of $16.00 have been assessed to the company's account There are two checks outstanding (not yet appearing on the bank statement) that were written for $813.13 and $488.93. A $424.76 check from one of the company's customers, Phil Cooners, was returned by the bank because of insufficient funds (NSF) in the customer's account.