FREQUENTLY ENCOUNTERED TRICKS IN PROOF OF CASH:

Beginning Receipts Disbursement Ending

1. Errors last month corrected this month:
a. Overstatement of CR (xxx) (xxx)
b. Understatement of CR xxx (xxx)
c. Overstatement of CD xxx (xxx)
d. Understatement of CD (xxx) (xxx)

2. Errors last month not yet corrected this month:

a. Overstatement of CR (xxx) (xxx)
b. Understatement of CR xxx xxx
c. Overstatement of CD xxx xxx
d. Understatement of CD (xxx) (xxx)

3. Errors this month not yet corrected:

a. Overstatement of CR (net amount) (xxx) (xxx)
b.Understatement of CR (net amount) xxx xxx
c. Overstatement of CD (net amount) (xxx) xxx
d. Understatement of CD (net amount) xxx (xxx)
FREQUENTLY ENCOUNTERED TRICKS IN PROOF OF CASH:

Adjusted balance method - books BOOKS FEBRUARY BOOKS

Beg. Rec. Disb. End
1. NSF Check amounting to 3,399 returned in February.
This was deposited in January. -3,399 -3,399
2. NSF Check amounting to 8,900 deposited in February
and returned in March. -8,900 -8,900

3. NSF check recorded as reduction of cash receipts

a. Returned January recorded February, 300 -300 300
b. Returned February recorded February, 500 500 500
4. Unrecorded disbursements January corrected in
February, 800 -800 -800
5. Unrecorded receipts January corrected in February,
1,000. 1,000 -1,000
6. Unrecorded disbursements January not yet corrected
in February, 1,200. -1,200 -1,200
7. Unrecorded recepits January not yet corrected in
February,1,400. 1,400 1,400
8. Unrecorded disbursements for the month of
February, 1,600. 1,600 -1,600

9. Unrecorded receipts for the month of February,1,800 1,800 1,800

10. Post-dated or unreleased check of the company

included as outstanding checks of the company included
as outstanding checks for the month of February, 2,000. -2,000 2,000
11. Post-datd check from customer February recorded
as receipts in February, 1,200. 1,200 -1,200
12. Cancellation of company's checks recorded by a
reduction of cash disbursements, 2,600 2,600 -2,600

13. Check of the company issued in January was

mutilated and returned by the payee. A replacement
check was issued. Both checks were entered in the
check register but no entry was made to cancel the
mutilated check, 2,700. (in addition, this should not be
included as part of the outstanding checks in January). 2,700 2,700

14. Checks issued in January and was included in the

outstanding checks in January was recorded for 3,000
but when the bank statement was received in February
the correct amount of this check is 300. No correction
was made in February. (300 should be included as
outstanding checks in January) 2,700 2,700

15. The company issued a stop payment order to the

bank in February which was not received by the payee.
A new check was written and recorded in the check
register in February. The old check was written off by a
journal entry also in February, 3,200. -3,200 -3,200

Adjusted balance method - bank BANK FEBRUARY BANK

Beg. Rec. Disb. End
1. Customer's NSF check returned by bank in January
and redeposited and cleared in February. (No entry in
January and February), 3,400
-3,400 3,400
2. Payment directly from the collections (Paid out in
currency), 1,000. 1,000 1,000

3. Erroneous Bank credit made in February corrected by

Debit/Disbursements also in February, 3,100. -3,100 -3,100

4. Customer's dishonored checks in February are

recorded as reduction of cash receipts. The dishonored
checks are redeposited also in February and are
recorded as regular receipts, 2,400. -2,400 -2,400

5. NSF Check amounting to 2,000 returned this month

and redeposited this month (no entry was recorded in
the books both on the return and redeposit) -2,000 -2,000