Problem I
The entries of the cash in bank account of Auditor Pension House and the bank statement of Land Bank of the
Philippines, High Way Branch are given below. Prepare a bank reconciliation in GOOD FORM. (5 points)
Cash In Bank
Cash Receipts Cash Disbursement
Feb 1 Beginning Balance 100,000 Check# 51 5,000 Feb 7
Feb 5 OR# 581 20,000 Check# 52 6,000 Feb 8
Feb 7 OR# 582 15,000 Check# 53 18,000 Feb 11
Feb 25 OR# 583 10,000 Check# 54 15,000 Feb 23
Land Bank of the Philippines
National High Way Branch
General Santos City
Account with Auditor Pension House
Address: General Santos City
Problem II
The information below relates to CHARMAINE COMPANY’s cash in bank:
Balance per bank statement, December 31, 2020
Collections recorded but not yet deposited in bank
NSF check – not recorded on books nor redeposited
Bank charges not recorded
Note collected by bank and not recorded on books
The cash balance in the books Charmaine Company on December 31, 2020, is: 26,100
Problem III
The following data were taken from Garay’s check register for the month of April. Garay’s bank reconciliation for March
showed one outstanding check, check no. 178 for P2,150 (written on March 20), and one deposit in transit for P4,350
(made on March 31).
The following is from Garay’s bank statement for April:
Assume that any errors or discrepancies you find are Garay’s, not the bank’s.
What is the adjusted cash balance as of April 30 26,833
BANK RECONCILIATION
+Problem 1
Presented below are a series of unrelated situations:
1. The accountant of NARCISA Co. provided the following data in reconciling the April 30 cash in bank balance:
Balance per bank, April 30 P 130,350
Balance per book, April 30 85,000
Bank service charge 2,000
Deposits in transit 49,000
Outstanding checks 17,650
Notes collected by bank including P11,200 interest
(Narcisa Co. not yet informed) 136,000
Check drawn by XYZ Co. erroneously charged by
Bank to Narcisa’s Account 54,600
A transposition error was made in recording a sale and deposit in transit in the sales journal and cash receipts journal in April.
Correct amount P 13, 658
Recorded as P 16, 358
Requirement: What is the adjusted cash balance on April 30?
Solution:
Book Bank
Unadjusted balances 85,000 130,350
Bank service charge (2,000)
Deposits in Transit 49,000
Outstanding checks (17,650)
Collection of note 136,000
Erroneous bank debit 54,600
Transposition error (16,358-13,658) ( 2,700)
Adjusted balances 216,300 216,300
2. The following information is included in EMIL Corporation’s bank statement for the month of March:
A customer’s check has been marked NSF by the
Bank and returned P 13,000
Bank service charge for March 1,200
In comparing the bank statement to the company’s cash records, you found:
Outstanding checks on March 31 P 184,000
Deposits made but are not yet shown in the April bank statement 14,000
The deposits in transit and outstanding checks have been correctly taken up in the company’s books. You also found a
customer’s check for P17,400 that had not yet been deposited and had not yet been recorded in Emil’s books. Your client’s
book shows a cash balance of P36,420.
Requirement: What is Emil Corporation’s correct cash balance at March 31?
Solution:
Balance per books 36,420
Unrecorded and undeposited customer’s check 17,400
Bank service charge (1,200)
NSF Check (13,000)
Adjusted Balance 39,620
3. The following information pertains to a checking account of a company at June 30, 2014,
Balance per bank statement P 200,000
Interest earned for the second quarter 500
Outstanding checks 15,000
Customers’ checks returned for insufficient fund 5,000
Deposit in transit 25,000
Requirement: What is the adjusted cash balance at June 30, 2014?
Solution:
Balance per bank statement 200,000
Outstanding checks ( 15,000)
Deposit in transit 25,000
Interest earned (500)
NSF check 5,000
Balance per books at June 30, 2014 214,500