1.

D
Solution:
18,050 + 3,250 – 2,750 = 18,550

2. A
Solutions:
SUBSIDIARY LEDGER
CASH IN BANK - BPI CURRENT ACCOUNT
Date Description Debit Credit Balance
6/1 Bal. forwarded     881,000
6/11 Check #1113   130,800 750,200
6/15 Check #1114   220,000 530,200
6/16 Deposit 295,800   826,000
6/22 Deposit 670,000   1,496,000
6/24 Check #1115   80,000 1,416,000
6/28 Check #1116   380,000 1,036,000
6/29 Deposit 160,000   1,196,000

METROBANK
BANK STATEMENT - ENTITY A
Dat
Description Debit Credit Balance
e
6/1 Bal. forwarded     881,000
6/10 Deposit 350,000 1,231,000
6/15 Payment 2,000   1,229,000
6/15 Check #1114 220,000   1,009,000
6/16 Deposit   295,800 1,304,800
6/20 Payment 50,000 1,254,800
6/22 Deposit   670,000 1,924,800
6/24 Check #1115 80,000 1,844,800
6/26 Check #1113 130,800 1,714,000
6/28 Deposit   410,000 2,124,000

Bank reconciling items:

 Deposit in transit: ₱160,000 deposit on 6/29.
 Outstanding check: ₱380,000 Check #1116.
Book reconciling items:
 Credit memos: ₱350,000 deposit on 6/10 + ₱410,000 deposit on 6/28 = ₱760,000.
 Debit memos: ₱2,000 payment on 6/15 + ₱50,000 payment on 6/20 = ₱52,000.

Bal. per books, end. 1,196,000 Bal. per bank, end. 2,124,000
Add: CM 760,000 Add: DIT 160,000
Less: DM (52,000) Less: OC (380,000)
Add/Less: Book errors - Add/Less: Bank errors -
Adjusted balance 1,904,000 Adjusted balance 1,904,000
     

3. C

4. D

5. A (See solutions below)

6. D (See solutions below)

7. A (See solutions below)

Solutions:
  Per books     Per bank  
Oct. 31 4,440       5,520 Oct. 31
Book Dr.
(squeeze) 6,280   Bank Dr. 2,800 1,840 Bank Cr. (squeeze)
  8,320 Book Cr.      
    2,400 Nov. 30 Nov. 30 4,560    
               

Deposit in transit as of November 31 is computed as follows:

Deposits in transit
DIT, Oct. 31 4,500      
Book debits 6,280 1,840 Bank credits
CM, Oct. (1,200) (600) CM, Nov.
Understated Understated
collections in Oct. deposits in Nov.
(1,620) 3,460 2,140 900
(1,800 - 180) (1,050 - 150)

       

5,820 DIT, Nov. 30

Outstanding checks as of November 31 is computed as follows:
Outstanding checks
3,800 OC, Oct. 31
Bank debits 2,800 8,320 Book credits
DM, Nov. (300) (900) DM, Oct.
Understated bank Overstated book
debits in Oct. (290) (800) debits in Oct.
Overstated bank
credit in Oct. (370) 1,840
Overstated book
6,320 (300) credits in Nov.
           

OC, Nov. 30 8,280

The bank reconciliation is prepared as follows:

Bal. per books, Nov. 30 2,400 Bal. per bank statement, Nov. 30 4,560
Add: Credit memos : Add: Deposits in transit 5,820
Proceeds from loan 600 Less: Outstanding checks (8,280)
Less: Debit memos: Add/Less: Bank errors:
NSF check (300) Understatement of deposit 900
Add/Less: Book errors:
Overstatement of
Payments 300

Adjusted balance 3,000 Adjusted balance 3,000

     

8. C (See solutions below)

9. A (See solutions below)

10. A (See solutions below)

Solutions:
Per books
  30-Jun Receipts Disbursements 31-Jul
Balance per books 5,600 30,700 27,000 9,300
Note collected by bank:
June 2,250 (2,250)
July 3,000 3,000
Bank service charges
June (20) (20)
July 100 (100)
NSF checks: (880) (880)
June 1,400 (1,400)
July
Book errors:
June 1,900 (1,900)
July 1,200 1,200
 Adjusted balances 8,850 30,750 27,600 12,000

Per bank
  30-Jun Receipts Disbursements 31-Jul
Balance per bank 10,200 27,900 21,300 16,800
Deposits in transit
June 6,000 (6,000)
July 11,250 11,250
Outstanding checks
June (9,750) (9,750)
July 17,850 (17,850)
Bank errors:
June 2,400 (2,400)
July (1,800) 1,800
Adjusted balances 8,850 30,750 27,600 12,000