SONS ACCOUNTING TUTORIAL

SEEDS OF THE NATIONS

BANK RECONCILIATION
1. Joseph Company provided the following data for the month of December:

a. What is the adjusted cash in bank?

b. What is the unadjusted cash in bank balance per bank statement?

2. Philipp Company’s check register shows the following entries for the month of December:

Philipp’s bank reconciliation for November revealed one outstanding check #14343 for
12,000 (written on Nov 28), and one deposit in transit for 5,550 (made on Nov 29).

The following is from Philipp’s bank Statement from Dec 2016:

Assume that all errors were committed by Philipp Company, not the bank,
Required:

1. Adjusted cash balance on November 30

2. Outstanding Checks on December 31
3. Deposit in Transit on December 31
4. Total bank receipts on December 31
5. Adjusted cash balance on December 31
3. In preparing the bank reconciliation for the month of December, David Company
provided the following data:

1. What is the adjusted cash in bank?

2. What is the unadjusted cash in bank balance per book?
4. Paul Company provided the following data for the purpose of reconciling the cash
balance per book with the balance per bank statement on December 31, 2016:

What amount should be reported as cash in bank on December 31, 2016?

5. Peter Company provided the bank statement for the month of April which included the
following information:

In comparing the bank statement to its own records, the entity found the following:

All deposits in transit and outstanding checks have been properly recorded in the entity’s
books.

A customer check for P35,000 payable to Peter Company had not yet been deposited and
had not been recorded by the entity.
The cash in bank account balance per ledger is P920,000

What is the adjusted cash in bank on April 30?

6. Matthew Company kept all cash in checking account. An examination of the accounting
record and bank statement for the month of December revealed a bank statement
balance of P8,470,000 and a book balance of P8,525,000.
 A deposit of P950,000 placed in the bank’s night depository on December 29 does
not appear on the bank statement.
 Checks outstanding on December 31 amount to P270,000,
 The bank statement showed that on December 25 the bank collected a note for
Matthew Company and credited the proceeds of P935,000 to the entity’s account
which included P35,000 interest.
 Matthew Company discovered that a check written in December for P183,000 in
payment of an account had been recorded as P138,000.
 Included with the December 31 bank statement was an NSF check for P250,000 that
Matthew Company had received from a customer on December 20.
 The bank statement showed a P15,000 service charge for December.
What is the adjusted cash in bank on December 31?
7. The Prodigal Son Company provided the following data for the month of January:

What is the adjusted cash in bank on January 31?

PROOF OF CASH
8. Lazarus Company had the following bank reconciliation on June 30:

The bank statement for the month of July showed the following:

All reconciling items on June 30 cleared through the bank in July. The outstanding checks
totaled P600,000 and the deposit in transit amounted to P1,000,000 on July 31.
1. What is the adjusted cash in Bank on July 31?
2. What is the cash balance per book on July 31?
3. What is the amount of cash receipts per book in July?
4. What is the amount of cash disbursements per book in July?

9. In connection with your examination, the Simon Company presented to you the following
information regarding its Cash in Bank account for the month of June of the current year:
a. Balances per bank statements: May 31, P1,250,000 and June 30, P1,350,000
b. Balances of cash in Bank account in the company’s books: May 31, P1,251,000
and June 30, P1,051,000
c. Total charges in the bank statement during June were P1,300,000
d. Undeposited receipts were: May 31, P200,000 and June 30, P153,000
e. Outstanding checks as of May 31, P150,000
f. Erroneous bank credits were: May 31, P45,000 and June 30, P17,000
g. Erroneous Bank charge were: May 31, P20,000 and June 30, P30,000
h. Collections by bank not recorded by company were P125,000 in May and
P150,000 in June
i. NSF not entered in the books were: May 31, P110,000 and June 30, P75,000
j. Customer’s check deposited in May amounting to P21,000 was erroneously
entered in the books as P12,000. Assume this was corrected in June.
10. Christmas Company presented the following bank reconciliation for the month of
November:

Data per bank statement for the month of Ddecember follow:

All items that were outstanding on November 30 cleared through the bank in December,
including the bank credit.
In addition, checks amounting to P500,000 were outstanding and deposits of P700,000 were
in transit on December 31.
1. What is the adjusted cash balance in bank on December 31?
2. What is the cash balance per ledger on December 31?
3. What is the amount of cash receipts per book in December?
4. What is the amount of cash disbursements per book in December?

11. The following data are available for the cash in bank of Chronicles Company for February
of the current year:
a. Checks issued by the company during February, P150,000
b. Outstanding checks, January 31, P52,000
c. Customer’s check representing receipts in January amounting to P12,000 was
erroneously recorded by the company as P21,000
d. Check of the company in January amounting to P20,000 was erroneously recorded by
the company as P2,000
e. Checks paid by the bank in February, P130,000
f. Erroneous bank credit in January, P10,000
g. Erroneous bank charge in February, P12,000
h. Bank Service Charge, January, P2,000
i. Bank service charge, February, P3,000
Required:
1. Outstanding checks on February 28
2. Unadjusted book disbursements in February
3. Unadjusted bank disbursements in February