orandums not recorded entries in the depositor’s books of accounts, ¢ statement has a balance of P200. If the credit memos ig checks are P10, the adjusted ne ledger balance of cash is P100, If the credit memos are P20, deposits in transit are P20, outstanding checks are P10, and NSF checks are P5, the adjusted cash balance is P110, ._ Ina proof of cash, if the June 30 cash balance is P20 while the July cash receipts and disbursements are P10 and P18, respectively, the July 31 cash balance must be P12. 3 _ 8 An entity is preparing a proof of cash for November 30 and December 31. If the unadjusted bank statement balance on November 30 is P30, the unadjusted deposits and withdrawals during December are P5 and P3, respectively, the unadjusted _ bank statement balance on December 31 must be P28. 9. The credit memos from the previous month are extended to _ the cash receipts column of a proof of cash as an addition. 10. The debit memos from the previous month are extended to the cash disbursements column of a proof of cash as a deduction. EM 2; MULTIPLE CHOICE - THEORY ‘These are deposits made but not yet credited by the bank to e depositor’s bank account. ‘ c, Outstanding checks (OC) d, Deposits in transit (DIT)preparing its February 28, 20x1 The following information was de lance per accounting books, Feb, 28, 20x1, lance per bank statement, Feb, 28, 20x1, 205, information: - mer deposited P30,000 to Entity A’s bank a ent for an account receivable. This is not yet record oks of accounts. 7200 check deposited by Entity A during the credited to Entity A’s account. drawn in the amount of P22,500 is not yet pr bank for payment. : i returned a check deposit amounting f insufficiency in the funds of the drawer, The ived from a customer as payment for aLEM 4: MULTIPLE CHOICE - COMPUTATIONAL 1 preparing its August 31, 2004 bank reconciliation, Qy rp. has made available the following information: ance per bank statement, 8/31/04 Deposit in transit, 8/31/04 ‘Return of customer's check for insufficient funds Outstanding checks, 8/31/04 __. Bank service charges for August __ Erroneous credit by bank At August 31, 2004, Cloud's correct cash balance is ££ a. + P28,800. b, P28,200, c. P28,100. d. P26,500, _ (Adapted) P68,757 on June 30. The bank statement as of June 30 showell _ balance of P54,780. Additional information that might useful in reconciling the two balances follows: § Gi4 Check number 748 drawn for ?3,000 was origindl recorded on the books as P4,500. A customer's note dated March 25 was discounte? _ April 12. The note was dishonored on June 29 (a's books. #2: BANK RECON CILIATION uses the imprest system. Th e following are excerpts from “Cash in bank — Baboy Bank’ Subsidiary ledger and from lovember bank statement.25,000.00 0784 19,000.00. 0784 (NSF) (DM) Requirement: Prepare the November bank reconciliation. Assum. any error is committed by ABC Co. he banl . represent PROBLEM 6: FOR CLASSROOM DISCUSSION «. Dark Co. Bank reconciliation — Depositor vs. Bank Journal entries Pal. Th The cash balance per books on June 30, 20x1 is P100,000, equa | cleared t to the cash balance per bank statement on the same date. The) d. Dark C transactions in July 20x1 are summarized below: account a. Collections from customers totaled P500,000. All th . correct ; collections were deposited; however, only P480,000 wert a a f ank st credited by the bank to the entity’s account as of July 4) 20x1. The difference was due to bank cut-off. b. Checks drawn totaled P200,000, of which ?140,000 encashed during the period. Customers deposited a total of P360,000 to the enti bank account as payment of accounts receivable. entity was not yet notified of the collections. et The fo wy iShe “following? ()° deposits Rear checks, (3) credit memo; and (4) debit memo. ‘the July 31, 20x1 bank reconciliation. e the reconciling entries in the entity’s books. 1k reconciliation , OnOct. 31, 20x1, Dark Co.'s cash balance per records is P7,540, while the balance per bank statement is P8,510. The following information is determined: a. The bank statement reflects a P780 deposit that is not yet recorded in the books. The deposit pertains to a collection of note receivable with a principal balance of P700; the difference represents the interest on the note. b. The bank statement also reflects a P25 withdrawal representing service charges for the month. c. Dark Co, erroneously recorded a check drawn for P140 as 410. The check, which is payment for an account payable, cleared the bank at the correct amount. d. Dark Co. erroneously recorded a P910 collection of an account receivable as P190. The bank statement reflects the correct amount of deposit. e. AP1,900 check deposit on Oct. 31 is not yet reflected in the bank statement. Pf. The following checks drawn by Dark Co. are not yet presented to the bank for payment: Check # 075 for P325, Check # 080 for P100, and Check # 094 for 700. irements: are the bank reconciliation for the month of October.~ April NSF check of a customer returned by -reconciliation-BanktoBook = The information below is from the books Corporation on June 30: Balance per bank statement Deposits in transit Sota? Bank charges not yet recorded by Seminole Note collected by the bank; not yet recorded Outstanding checks NSF checks - not yet recorded nor re-deposited Requirement: How much is the cash balance per books on ji before adjustments? "Bank reconciliation - DIT and OC computations 4. Adcock Plastics Company deposits all receipts and makes payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank 26,746 ‘Add: Deposits in transit 2,100 Deduct: Outstanding checks (3,800) _- Balance per books 25,046 Month of April Results Per Bank Per Balance April 30 P27,995 April deposits 10,784 April checks 11,100 April note collected (not included in April deposits) 3,000 April bank service charge 35 the bank (recorded by bank as a charge) 900