Rudolf Lee C.
Mangaliag
12 Abm Am2
1) Presented below is the bank statement of Gold Bank for the month of March.
GOLD BANK
Quezon City
Supra
Grocers
888
Congressional Account No. 00789
Avenue, QC. March 31, 2017
Date Debits Credit Balance
28-Feb CMP60, 000
4-Mar P20, 000 80, 000
6-Mar Chk No. 301 P10, 000 70, 000
11-Mar Chk No.302 30, 000 40, 000
CM60, 000 00, 000
12-Mar Chk No. 304 2, 000 98, 000
18-Mar 80, 000 178, 000
19-Mar Chk No. 305 40, 000 138, 000
25-Mar Chk No. 307 6, 000 132, 000
40, 000 172, 000
26-Mar 2, 000 NSF 170, 000
26-Mar Chk No. 299 10, 000 160, 000
DM
27-Mar Chk No. 306 112, 000 48, 000
28-Mar CM100, 000 148, 000
31-Mar 400 DM 147, 600
2. The following are taken from the books of Supra Grocers:
Rudolf Lee C. Mangaliag
12 Abm Am2
Cash Receipts Cash Payments
Mar 02 P20, 000 Chk. No. 301 P10, 000
Mar 09 40, 000 302 30, 000
Mar 10 20, 000DIT 303 4, 000OC
Mar 16 80, 000 304 2, 000
Mar 23 40, 000DIT 305 40, 000
Mar 30 70, 000DIT 306 112, 000
P270, 000 307 6, 000
308 4, 000OC
P208, 000
ADJUSTED BALANCE METHOD
BOOK BANK
Unadjusted Book Php 62 000 Unadjusted Bank Php 147 600
Balance Balance
Credit Memo 220 000 Deposit in Transit 130 000
Debit Memo (12 400) Outstanding (8000)
Check
Adjusted Book Php 269 000 Adjusted Bank Php 269 000
Balance Balance
3. Sir Gawain Trading’s bank statement for the month of January showed a balance per
bank of P81, 000. Cash balance per general ledger is P77, 700 at the end of the month.
Additional information for the month is as follows:
a. Bank statement has P1, 200 bank service charge.
b. Outstanding check as of January 31 amounted to P18, 000.
c. NSF check in the amount of P1, 680 was returned by the bank.
d. Cash receipt in the amount of P15, 600 recorded in the company’s books on
September 30 does not appear on the bank statement.
e. A credit memo (CM) in the amount of P3, 780 represents a customer’s note
Collected by the bank in the amount of P3, 600 with accrued interest of P180.
Rudolf Lee C. Mangaliag
12 Abm Am2
ADJUSTED BALANCE METHOD
BOOK BANK
Unadjusted Book Php 77 700 Unadjusted Bank Php 81 000
Balance Balance
Credit Memo 3 780 Deposit in Transit 15 600
Debit Memo (2 880) Outstanding (18 000)
Check
Adjusted Book Php 78 600 Adjusted Bank Php 78 600
Balance Balance
4. Given the following information, compute the correct cash balance.
Balance per bank P22, 907.50
Balance per book 21, 336.00
Deposit in transit 1, 814.00
Outstanding check 3, 470.50
A check for P450 was recorded in the books as P540.
A debit memo (DM) for the check book amounted to P175
ADJUSTED BALANCE METHOD
BOOK BANK
Unadjusted Book Php 21 336 Unadjusted Bank Php 22 907.50
Balance Balance
Debit Memo (175) Deposit in Transit 1 814
Error 90 Outstanding (3 470.50)
Check
Adjusted Book Php 21 251 Adjusted Bank Php 21, 251
Balance Balance
Correct cash balance: Php 21 251
5. Poseidon Trading opened a current account with Ocean Bank on May 5 with an initial
deposit of P498, 500. On May 31, the bank statement showed a balance of P575, 000.
Deposits for May made by Poseidon Trading per cash receipts book is P175, 000 and
checks issued for the same monthly amount to P99, 000. Per bank statement, total deposits
for the month of December totaled P150, 000 and the check paid by Traders Bank for the
same month totaled P72, 000> Bank service charge for the month is P1, 500.
Rudolf Lee C. Mangaliag
12 Abm Am2
Deposit in Transit May 1
Add: Deposit for May made by Poseidon Php 175 000
Less: Deposit acknowledge by bank (150 000)
Deposit in Transit in May Php 25 000
Outstanding Checks May 1
Add: Check issued by Poseidon Php 99 000
Less: Check paid by trader’s bank 72 000
Outstanding Check Php 27 000
Balance per Bank May 31 Unadjusted Php 575 000
Add: Deposit in Transit 25 000
Less: Outstanding Check (27 000)
Balance per Bank Adjusted Php 573 000
Balance per Book Unadjusted May 31 Php 498 500
Add: Deposit for May made by Poseidon 175 00
Less: Checks issued by Poseidon (99 000)
Bank service charge (1 500)
Balance per Book Adjusted Php 573 000
Deposit in transit: Php 25 000
Outstanding check: Php 27 000
Correct cash balance for Dec. 31: Php 573 000
