Cruz Company deposits all cash receipts on the day when they are received, and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows an R.O 11,352 debit balance. Cruzs June 30 bank statement shows R.O 10,332 on deposit in the bank. Use the following information to prepare the bank reconciliation Statement( BRS) :

a. Outstanding checks as of June 30 total R.O 1,713.

b. The June 30 bank statement included a R.O 23 debited for bank services; Cruz has not yet recorded the cost of these services.

c. In reviewing the bank statement, a R.O 90 check written by Cruz Company for furniture purchased was mistakenly recorded in Cruz Companys books at R.O 99.

d. June 30 cash receipts of R.O 2,724 were placed in the banks night depository after banking hours and were not recorded on the June 30 bank statement.

e. The bank statement included a $5 credit for interest earned on the cash in the bank.

If the check written by Cruz Company was mistakenly recorded at R.O99, the error will have the following effect:

a.

Increase the bank balance by R.O9

b.

Decrease the bank balance by R.O9

c.

Increase cash book by R.O 9

d.

Decrease cash book by R.O 9

During bank reconciliation, the adjustment required to the cash book balance for the outstanding check of R.O 1,713 is:

a.

No adjustment is required.

b.

Deduct R.O 1,713 from the Cash book balance.

c.

Add R.O 1,713 to the bank balance.

d.

Add R.O 1,713 to cash book balance.