Current Account BANK STATEMENT CASH RECEIPT JOURNAL / CASH DISBURSEMENT JOURNAL

Savings Account
Time deposit

TIMING DIFFERENCE

8/31
9/1

DEPOSIT in TRANSIT

8/31 FRIDAY

OUTSTANDING CHECKS

5,200 5,000
25,000 52,000

BANK ERROR

BANK RECONCILING ITEMS

DEPOSIT in TRANSIT
OUTSTANDING CHECK check payment (receivable) but not yet deposited by payee
BANK ERROR

BOOK RECONCILING ITEMS

CREDIT MEMO Notes Receivable
DEBIT MEMO Service charge, NSF check
BOOK ERROR

UNADJUSTED BANK BALANCE

ADD Deposit in Transit
LESS Outstanding Check
+/- Bank Error
ADJUSTED BANK BALANCE

UNADJUSTED BOOK BALANCE

ADD Credit Memo
LESS Debit Memo
+/- Book Error

APATHY COMPANY
Bank Reconciliation
December 31
Unadjusted Bank Balance 108,000
Add: Deposit in Transit 80,000
Deposit in transit 188,000
Less: Outstanding Check
#102 15,000
#105 30,000
#107 50,000 - 95,000
Adjusted bank balance 93,000

Unadjusted book balance 65,000

Add: Credit Memo- Note receivable collected by the bank 30,000
Total 95,000
Less: Debit Memo - Service charge - 2,000
Adjusted book balance 93,000

2. Adjusting entries

Cash in bank 30,000

Notes receivable 30,000

Bank service charge 2,000

Cash in bank 2,000

SENSIBLE COMPANY

SENSIBLE COMPANY
Bank Reconciliation
December 31

Unadjusted bank balance 135,000

Deposits in transit 60,000
Bank Error- Check drawn by Sensitive but debited to
Sensible 8,000 68,000
Total 203,000
Outstanding checks
#770 20,000
#775 30,000
#777 40,000 - 90,000
Adjusted bank balance 113,000

Unadjusted book balance 110,000

CM - Note collected by the bank 45,000
Total 155,000
DM
NSF Check 10,000
Bank service charge 5,000
Book error - Underbooking of disbursement 27,000 - 42,000
Adjusted book balance 113,000

2. Adjusting entries:

Cash in bank 45,000

Bank service charge 5,000
Notes receivable 50,000

Accounts receivable 10,000

Cash in bank 10,000

Bank service charge 5,000

Cash in bank 5,000

Accounts payable 27,000

Cash in bank 27,000

XANTHOUS COMPANY

Unadjusted bank balance 3,265,000

Deposit in transit 450,000
Total 3,715,000
Outstanding check
#116 60,000
#122 180,000
#124 120,000
#125 250,000 - 610,000
Adjusted bank balance 3,105,000

Unadjusted book balance 2,840,000

CM - Note collected plus interest 270,000
Total 3,110,000
DM - Service charge - 5,000
Adjusted book balance 3,105,000

Cash in bank 270,000

Service charge 10,000
Notes receivable 250,000
Interest income 30,000

Service charge 5,000

Cash in bank 5,000

CHIVALRY COMPANY
 BOOK Balance BANK Balance
Unadjusted balance 1,405,000 5,630,000
Deposits in transit 750,000
CM - Note collected plus interest 2,650,000
Bank error - Deposit of Cavalry credited to Chivalry - 1,100,000
DM - Bank service charge - 5,000
Book error - Overbooking of disbursement 45,000
DM - Preauthorized payment of utility and NSF check - 465,000
Outstanding check - - 1,650,000
Adjusted balance 3,630,000 3,630,000

Cash in bank 2,650,000

Notes receivable 2,500,000
Interest income 150,000

Bank service charge 5,000

Cash in bank 5,000

Cash inbank 45,000

Accounts payable 45,000

Utilities expense 245,000

Accounts receivable 220,000
Cash in bank 465,000

ZODIAC

BOOK BANK
Unadjusted balance 1,100,000 1,000,000
Outstanding check (40K+30K+60K+10K) - 140,000
DM - B.S.C and NSF check (5K+25K) - 30,000
CM - Note collected by the bank 60,000
Deposit in transit - 270,000
Adjusted balance 1,130,000 1,130,000

RADIANT UNADJUSTED UNADJUSTED

BOOK BANK
Unadjusted balance 3,670,000 3,500,000
Deposit in transit 550,000
DM - NSF check - 50,000
Outstanding check - 650,000
DM - Rental for safety deposit box - 5,000
Book error - 270,000
Book error 180,000
Unrecorded check disbursemenr - 125,000 -
3,400,000 3,400,000
URSEMENT JOURNAL

deposited by payee