Problem I

Cool Company prepared the following bank reconciliation for the month of November:

Balance per bank statement, November 30 3,600,000

Add: Deposit in transit 800,000
4,400,000
Less: Outstanding checks 1,200,000
Bank credit recorded in error 200,000 1,400,000
Balance per book November 30 3,000,000

Data per bank statement for the month of December:

December deposits, including note receivable 5,50

collected of P1,000,000 for Cool Company 0,000
December disbursements, including NSF check 4,40
P350,000 and service charge P50,000 0,000

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All items that were outstanding on November 30 cleared through bank in December, including the bank

co
credit. In addition, checks of P500,000 were outstanding and deposits of P700,000 were in transit on

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December 31.

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1. What is the adjusted cash in bank on December 31?
a. 4,700,000
rs e
ou urc
b. 4,900,000
c. 4,500,000
d. 3,200,000
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Answer: B
aC s

2. What is the balance of cash per ledger on December 31?

vi y re

a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
ed d
ar stu

Answer: D

3. What is the amount of cash receipts per book in December?

a. 5,400,000
b. 4,400,000
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c. 5,500,000
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d. 6,400,000

Answer: B

4. What is the amount of cash disbursements per book in December?

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a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000

Answer: C

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 Solutions:

Question 1

Balance per bank- November 30 3,600,000

Demand deposits 5,500,000
Total 9,100,000
December disbursements (4,400,000)
Balance per bank- December 31 4,700,000
Deposit in transit- December 700,000
Outstanding checks- December (500,000)
Adjusted bank balance- December 31 4,900,000

Question 2

Adjusted book balance 4,900,000

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Service charge 50,000

co
NSF check 350,000

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Note collected by bank (1,000,000)

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Balance per book- December 31 4,300,000

rs e
ou urc
Question 3

Bank receipts in December 5,500,000

Note collected (1,000,000)
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Deposit in transit- November (800,000)

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Deposit in transit- December 700,000

vi y re

Cash receipts per book in December 4,400,000

Question 4
ed d
ar stu

Bank disbursements in December 4,400,000

NSF check (350,000)
Service charge (50,000)
is

Outstanding checks- November (1,200,000)

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Erroneous bank credit in November (200,000)

Outstanding checks- December 500,000
Book disbursements in December 3,100,000
sh

Reference: Intermediate Accounting Volume 1 2019, C. Valix, p. 94

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 Problem II
Loquacious Company prepared the following bank reconciliation on June 30.

Balance per bank 9,800,000

Deposit in transit 400,000
Outstanding checks (1,400,000)
Balance per book 8,800,000

There were total deposits of P6,500,000 and charges for disbursements of P9,000,000 for July per bank
statement.

All reconciliation items on June 30 cleared the bank on July 31. Deposit in transit totaled P600,000 and
checks outstanding amounted to P1,000,000 on July 31.

1. What is the adjusted cash in bank in July 31?

a. 7,300,000
b. 7,900,000
c. 6,900,000

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d. 6,300,000

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Answer: C

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2. What is the cash balance per book on July 31?

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a. 6,900,000
b. 7,300,000 rs e
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c. 6,300,000
d. 8,800,000

Answer: A
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3. What is the amount of cash receipts per book in July?

vi y re

a. 6,700,000
b. 6,500,000
c. 6,300,000
d. 7,100,000
ed d

Answer: A
ar stu

4. What is the amount of cash disbursements per book in July?

a. 8,600,000
b. 7,600,000
is

c. 9,400,000
d. 8,400,000
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Answer: A
sh

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 Solution:

Question 1

Balance per bank - June 30 9,800,000

Bank deposits for July 6,500,000

Bank disbursements for July (9,000,000)

Balance per bank - July 31 7,300,000

Deposit in transit - July 600,000

Outstanding checks (1,000,000)

Adjusted bank balance 6,900,000

Question 2

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Since there are no book reconciling items, the cash balance per book is the same as the adjusted bank

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balance.

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Question 3

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Bank deposits for July
rs e 6,500,000
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Deposit in transit - July 31 600,000
Deposit in transit - June 30 (400,000)
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Cash receipts per book for July 6,700,000

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vi y re

Question 4

Bank disbursements for July 9,000,000

ed d

Outstanding checks - July 31 1,000,000

ar stu

Outstanding checks - June 30 (1,400,000)

Cash disbursements per book for July 8,600,000
is

Reference: Intermediate Accounting Volume 1 2019, C. Valix, p. 96

Th
sh

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