EXERCISE

From the example number 2, prepare an adjusted bank balance by filling

out the box.

Cash Balance per Bank Statement

Deposits in Transit

Subtotal

Quarter 2 Week 2–A

Outstanding Checks ( ABM_FABM12-Iid-13)
The learner prepares a bank reconciliation statement

Adjusted/Corrected Balance per Bank Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.
This ABMPackage is published to be utilized by the Schools Division of Iloilo.
ALL RIGHTS RESERVED. No part of this learning resource maybe
reproduced or transmitted in any form or by any means electronic or mechanical
without written permission from the Schools Division of Iloilo.

Writer: EVA L. ROBLES

Graphic Artist: PATRICK T. LOMIGO
Layout Artist: KRISHEA MAE P. JARUDA
Division Quality Assurance: Dr. KIM S. ARCEÑA
YLEM I. CAGURIN, MATM
EPS I - Mathematics: Dr. KIM S. ARCEÑA
Management Team:
Dr. Roel F. Bermejo, Dr. Nordy D. Siason, Jr.
Dr. Lilibeth T. Estoque, Dr. Azucena T. Falales
Ruben S. Libutaque, Lilibeth E. Larupay, Dr. Kim S. Arceña

Schools Division of Iloilo

 GENERALIZATION
The Bank Reconciliation Process:

Step 1. Adjusting the Balance per Bank EXAMPLE 2

The first step is to adjust the balance on the bank statement to the true,
adjusted, or corrected balance.

Step 1: Circle the statement if it is recorded in the adjusted bank balance.

Balance per bank on __________ xxx
Adjustments:
Add: Deposits in Transit xxx 1.Jay Lopez` bank statement shows a balance of P17, 480 as of
Deduct: Outstanding Checks ( xxx ) xxx November 30.
Add/Deduct bank errors xxx
Adjusted/Corrected Balance per Bank xxx
2.The balance in Lopez check stubs and general ledger cash account
is P22,930.

EXAMPLE 1
3. A deposit of P6,370 on November 30 on the books had not been
Item 1 received by the bank. Lopez has received the funds but the amount has not
The bank statement for August 2014 shows an ending balance of yet been received by the bank.
Php3,490.

Item 2
During the month of August the company wrote checks totaling more than
Php50,000. As of August 31 Php3,021 of the checks written in
August had not yet cleared the bank and Php200 of checks written in June
had not yet cleared the bank.
4. The following checks are outstanding: Check no. 219-P2,000,
Check no. 224-P250, Check no. 227-P670. The funds have been disbursed
by Lopez but have not yet been paid by the bank.

Item 3
The Php1,450 of cash received by the company on August 31 was recorded 5.Eagle repairs received P1,500 from Jane. The bookkeeper recorded
on the company's books as of August 31. However, the Php1,450 the amount as P500.
of cash receipts was deposited at the bank on the morning of September 1.

Cash Balance per Bank Statement PHP 3,490

Deposits in Transit 1,450
Subtotal 4,940
Outstanding Checks ( 3,221 )
Adjusted/Corrected Balance per Bank PHP 1,719

.
 EXERCISE
Indicate whether the action at the left will result in addition to (+) or
subtraction from (-) the ending bank balance or ending book balance.

Ending Bank balance Ending Book balance

a. Deposits in transit
to the bank _____________ ____________

b. Error in check was

recorded as P320; correct
amount was P230. _____________ _____________

c. Service Fee charged Quarter 2 Week 2–B

by bank
d. Outstanding Checks
e. NSF Check deposited
_____________ _____________ ( ABM_FABM12-Iid-13)
The learner prepares a bank reconciliation statement
_____________ _____________
Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
_____________ ______________ government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.
This ABMPackage is published to be utilized by the Schools Division of Iloilo.
ALL RIGHTS RESERVED. No part of this learning resource maybe
reproduced or transmitted in any form or by any means electronic or mechanical
without written permission from the Schools Division of Iloilo.

Writer: EVA L. ROBLES

Graphic Artist: PATRICK T. LOMIGO
Layout Artist: KRISHEA MAE P. JARUDA
Key in or click the link: Division Quality Assurance: Dr. KIM S. ARCEÑA
https://www.youtube.com/watch?v=ciM67vECz88&feature=share&fbclid=IwAR1iBUh YLEM I. CAGURIN, MATM
r5S4n_e9WX98M4P6KEgL2zB3mojO1KxzgOJtG1rvI7_XmtCARaoo EPS I - Mathematics: Dr. KIM S. ARCEÑA
Management Team:
Dr. Roel F. Bermejo, Dr. Nordy D. Siason, Jr.
Dr. Lilibeth T. Estoque, Dr. Azucena T. Falales
Ruben S. Libutaque, Lilibeth E. Larupay, Dr. Kim S. Arceña

Schools Division of Iloilo

 GENERALIZATION
EXAMPLE 2
The Bank Reconciliation Process:
Solution to the answer of example no. 1
Step 1. Adjusting the Balance per Bank
Balance per book 967
Step 2. Adjusting the Balance per Books
The second step of the bank reconciliation is to adjust the balance in the Add:
company's Cash account so that it is the true, adjusted, or corrected Interest earned 8
balance.
Notes receivable collected less fees 960
Balance per book on _________ xxx
Adjustments: Subtotal 1,935
Add: Interest earned xxx
Notes Receivable collected by bank xxx xxx Less:
Deduct: NSF Check and Fees xxx Bank Service charges (80)
Bank Service Charges xxx xxx
Add/Deduct Errors xxx
Adjusted/Corrected Balance per book xxx Adjusted cash balance per books Php 1,855

EXAMPLE 1
Draw a circle ( ) before the number if the statement below is recorded in EXAMPLE 3
the adjusted/corrected balance per book. Prepare an adjusted balance per
books.
Prepare an adjusted book balance of the following data:
___1.The bank statement shows a charge of Php80 for check printing on
August 20. Book balance, September 30 P58, 400.20
___2.The bank statement shows that Php8 was added to the checking NSF Check 4,000.00
account on August 31 for interest earned by the company during the Service Fee 80.30
month of August.
___3.The bank statement shows that a note receivable of Php1,000 was
collected by the bank on August 29 and was deposited into the company's
account. On the same day, the bank withdrew Php40 from the company's Solution:
account as a fee for collecting the note receivable.
___4.The company's Cash account at the end of August shows a balance of Book balance, September 30 P58, 400.20
Php967. Less:
___5. During the month of August the company wrote checks totaling more NSF Check 4,000.00
than Php50,000. As of August 31 Php3,021 of the checks written in Service Fee 80.30 4,080.30
August had not yet cleared the bank and Php200 of checks written in June Adjusted book balance P54,119.90
had not yet cleared the bank.
 EXAMPLE
Solution

ABC COMPANY
BANK RECONCILIATION
AUGUST 31, 2014

Cash balance per bank statement Php 3,490

Add: Deposit in Transit 1,450
Subtotal 4,940
Less: Outstanding checks (3,221)
Adjusted cash balance per bank Php 1,719

Cash balance per books Php 967

Add: Interest earned 8
Notes receivable collected less fees 960 Quarter 2 Week 2–C
Errors in company's Cash account 9 ( ABM_FABM12-Iid-13)
Subtotal 1,944 The learner prepares a bank reconciliation statement
Less: Bank Service charges (35)
NSF checks and fees (110)
Check printing charges (80)
Republic Act 8293, section 176 states that: No copyright shall subsist in any
Adjusted cash balance per books Php 1,719 work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
EXERCISE impose as a condition the payment of royalties.
This ABMPackage is published to be utilized by the Schools Division of Iloilo.
ALL RIGHTS RESERVED. No part of this learning resource maybe
Create an acronym of the adjusted cash balance per bank and reproduced or transmitted in any form or by any means electronic or mechanical
without written permission from the Schools Division of Iloilo.
adjusted cash balance per books. Write it in your notebook.

Writer: EVA L. ROBLES

Graphic Artist: PATRICK T. LOMIGO
Layout Artist: KRISHEA MAE P. JARUDA
Key in or click the link: Division Quality Assurance: Dr. KIM S. ARCEÑA
https://www.youtube.com/watch?v=ciM67vECz88&feature=share&fbclid=IwAR1iBUh YLEM I. CAGURIN, MATM
r5S4n_e9WX98M4P6KEgL2zB3mojO1KxzgOJtG1rvI7_XmtCARaoo EPS I - Mathematics: Dr. KIM S. ARCEÑA
Management Team:
Dr. Roel F. Bermejo, Dr. Nordy D. Siason, Jr.
Dr. Lilibeth T. Estoque, Dr. Azucena T. Falales
Ruben S. Libutaque, Lilibeth E. Larupay, Dr. Kim S. Arceña

Schools Division of Iloilo

 GENERALIZATION
EXAMPLE 1
The Bank Reconciliation Process:
Item 1
Step 1. Adjusting the Balance per Bank The bank statement for August 2014 shows an ending balance of Php3,490.
Item 2
Step 2. Adjusting the Balance per Books On August 31 the bank statement shows charges of Php35 for the service
charge for maintaining the checking account.
Step 3: Comparing the Adjusted Balances Item 3
After adjusting the balance per bank (Step 1) and after adjusting the On August 28 the bank statement shows a return item of Php100 plus a
balance per books (Step 2), the two adjusted amounts should be equal. related bank fee of Php10. The return item is a customer's check that was
If they are not equal, you must repeat the process until the balances are returned because of insufficient funds.
identical. The balances should be the true, correct amount of cash as of Item 4
the date of the bank reconciliation. The bank statement shows a charge of Php80 for check printing on August
20.
Bank Reconciliation Format Item 5
The bank statement shows that Php8 was added to the checking account on
X Company August 31 for interest earned by the company during the month of August.
Bank Reconciliation Statement Item 6
December 31, 20X1 The bank statement shows that a note receivable of Php1,000 was collected
by the bank on August 29 and was deposited into the company's account.
Balance per bank on __________ xxx On the same day, the bank withdrew Php40 from the company's account as
Adjustments: a fee for collecting the note receivable.
Add: Deposits in Transit xxx Item 7
Deduct: Outstanding Checks ( xxx ) xxx The company's Cash account at the end of August shows a balance of
Add/Deduct bank errors xxx Php967.
Adjusted/Corrected Balance per Bank xxx Item 8
During the month of August the company wrote checks totaling more than
Balance per book on _________ xxx Php50,000. As of August 31 Php3,021 of the checks written in August had
Adjustments: not yet cleared the bank and Php200 of checks written in June had not yet
Add: Interest earned xxx cleared the bank.
Notes Receivable collected by bank xxx xxx Item 9
Deduct: NSF Check and Fees xxx The Php1,450 of cash received by the company on August 31 was recorded
Bank Service Charges xxx xxx on the company's books as of August 31. However, the Php1,450
Add/Deduct Errors xxx of cash receipts was deposited at the bank on the morning of September 1.
Adjusted/Corrected Balance per book xxx Item 10
On August 29 the company's Cash account shows cash sales of Php145. The
bank statement shows the amount deposited was actually Php154.
The company reviewed the transactions and found that Php154 was the
correct amount.
 EXERCISE 1

The accounting department supplied the following data in reconciling the

September 30, 2017 bank statement for Greg Gonzales.

Ending Cash balance per bank P12,469.16

Ending cash balance per books 16,697.20
Deposit in transit 3,251.42
Bank service charge 20.00
Outstanding checks 4,163.51
NSF Check 5,120.13

Prepare the September 30, 2017 bank reconciliation.

EXERCISE 2
Bank reconciliation problem:
The bank statement for Juan Company shows a balance per bank of Quarter 2 Week 2–D
P15,907.45 on April 30,2015. ( ABM_FABM12-Iid-13)
On this date the balance of cash per books is P11,589.45. The learner prepares a bank reconciliation statement
Additional information are provided below:
Deposits in transit: April 30 deposit (received by the bank on May 1)
P2,201.40 Republic Act 8293, section 176 states that: No copyright shall subsist in any
Outstanding checks: No. 453-P3,000.00 work of the Government of the Philippines. However, prior approval of the
No. 457-P1,401.30 government agency or office wherein the work is created shall be necessary for
No. 460-P1,502.70 exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.
Errors: Juan wrote check no. 443 for P1,226.00 and the bank correctly paid
This ABMPackage is published to be utilized by the Schools Division of Iloilo.
that amount. However, he recorded the check as P1,262.00.
ALL RIGHTS RESERVED. No part of this learning resource maybe
Bank memoranda: reproduced or transmitted in any form or by any means electronic or mechanical
NSF check from Pedro P425.60 . without written permission from the Schools Division of Iloilo.
Charge for printing company checks P30.00
Collection of notes receivable P1,000 plus interest earned of P50, less bank
collection fee of P15. Writer: EVA L. ROBLES
Graphic Artist: PATRICK T. LOMIGO
Prepare the April 30, 2015 bank reconciliation statement. Layout Artist: KRISHEA MAE P. JARUDA
Hint: Division Quality Assurance: Dr. KIM S. ARCEÑA
Bank debit memos (Bank charges, NSF checks) YLEM I. CAGURIN, MATM
Bank credit memos (collection by bank) EPS I - Mathematics: Dr. KIM S. ARCEÑA
Key in or click the link: Management Team:
https://www.youtube.com/watch?v=ciM67vECz88&feature=share&fbclid=IwAR1iBUh Dr. Roel F. Bermejo, Dr. Nordy D. Siason, Jr.
r5S4n_e9WX98M4P6KEgL2zB3mojO1KxzgOJtG1rvI7_XmtCARaoo Dr. Lilibeth T. Estoque, Dr. Azucena T. Falales
Ruben S. Libutaque, Lilibeth E. Larupay, Dr. Kim S. Arceña

Schools Division of Iloilo

 GENERALIZATION
The Bank Reconciliation Process:
Step 1. Adjusting the Balance per Bank
Step 2. Adjusting the Balance per Books
Step 3: Comparing the Adjusted Balances
Bank Reconciliation Format
EXAMPLE 1
Jay Lopez` bank statement shows a balance of P17, 480 as of November
30, 2017. The balance in Lopez` check stubs and general ledger cash
account is P22,930. The following are the reconciliation items.
1. A deposit of P6,370 on November 30 on the books had not been
received by the bank. Lopez has received the funds but the amount has not
yet been received by the bank.
2. The following checks are outstanding: Check no. 219-P2,000,
Check no. 224-P250, Check no. 227-P670. The funds have been disbursed
by Lopez but have not yet been paid by the bank.

X Company 3. Check number 214 was written for P2,000, but was entered on the
Bank Reconciliation Statement check stub and on the books as P2,900 .
December 31, 20X1
4. The bank returned as NSF check of P2,000. The bank has reduced
Balance per bank on __________ xxx Lopez`s balance by this amount but Lopez has not yet recorded it.
Adjustments:
Add: Deposits in Transit xxx 5. The bank service charge was P900.
Deduct: Outstanding Checks ( xxx ) xxx
Add/Deduct bank errors xxx Solution:
Adjusted/Corrected Balance per Bank xxx Jay Lopez
Bank Reconciliation
Balance per book on _________ xxx November 30, 2017
Adjustments:
Add: Interest earned xxx Bank Statement balance, November 30 P17, 480
Notes Receivable collected by bank xxx xxx Add: Deposit in Transit 6, 370
Deduct: NSF Check and Fees xxx Subtotal P23, 850
Bank Service Charges xxx xxx
Add/Deduct Errors xxx Deduct: Outstanding Checks:
Adjusted/Corrected Balance per book xxx No. 219 P2,000
No. 224 250
No. 227 670 ( 2,920)
Adjusted bank balance P20,930

Book balance, November 30 P22,930

Add: Correction of error on stub for check no. 214 900
Subtotal P23,830
Deduct: NSF Check P2,000
Bank service charge 900 2,900
Adjusted book balance P20,930

.
Answer Key
Quarter 2 Week 2
A
Cash balance per bank statement 17, 480.00
Add: Deposits in transit 6, 370.00
Subtotal 23, 850.00
Less: Outstanding Checks
Check No. 219 2,000.00
Check No. 224 250.00
Check No. 227 670.00 2,920.00
Adjusted balance per bank 20,930.00

B.
a.Ending bank balance (+)
b. Ending Book balance (-)
c. Ending bank balance (-)
d.Ending bank balance (-)
e. Ending Book balance (-)
C.Answers may vary
D
Exercise 1
Greg Gonzales
Bank Reconciliation Statement
September 17, 2017

Cash balance per bank PHP12,469.16 Cash balance per book PHP 16,697.20
Add: Deposit in Transit 3,251.16 Less: service charges 20.00
Subtotal 15,720.58 NSF 5,120.13 ( 5,140.13)
Less: Oustanding Checks (4,163.51) Adjusted book balance PHP 11,557.07
Adjusted bank balance 7 PHP 11,557.07
 Juan Company
Bank Reconciliation Statement
April 30, 2015

Exercise 2

Unadjusted Book Balance PHP 11,589.45 Unadjusted Bank Balance PHP 15,907.45
Error in recording check no. 443 36.00 Deposit in Transit 2,201.40
(1226-1262) Subtotal 18,108.85
Bank Credit Memo Collection 1,035.00 Less:Outstanding Checks
Subtotal 12,660.45 No. 453 3,000.00
Less; NSF Check (425.60) No. 457 1,401.30
Printing Charges ( 30.00) (455.60) No.460 1,502.70 ( 5,904.00)
Adjusted Book Balance PHP12,204.85 Adjusted bank balance PHP 12,204.85