1

PROOF OF CASH Computation of Deposit in Transit

Two-Date Bank Reconciliation Deposit in Transit - Beginning xxx

Add: Cash receipts deposited during the xxx
 A bank reconciliation that involves two dates month
 Also called four-column reconciliation Book debits xxx
 Procedures followed are the same with that of a Previous month’s credit
one-date reconciliation memo (xxx)
 Becomes complicated only when certain facts or Total deposits to be acknowledged by xxx
data are omitted: (can’t determine the following) the bank
a. Book balance – Beginning and Ending Less: Deposits acknowledged by the xxx
b. Bank balance – Beginning and Ending bank during the month
c. Deposit in Transit – Beginning and Ending Bank credits xxx
Current month’s credit
d. Outstanding checks – Beginning and Ending
memo (xxx)
Deposit in Transit - Ending xxx
Proof of Cash

 An expanded reconciliation in that in includes

proof of receipts and disbursements.
 Useful in discovering possible discrepancies in
handling cash particularly when cash receipts
have been recorded but have not been deposited.
 To discover or identify cash receipts and cash
disbursement: Computation of Outstanding Checks
 Recorded in the accounting records but
Outstanding Checks - Beginning xxx
not on the bank statement.
Add: Checks drawn by depositor during xxx
 Recorded on the bank statement, but not
the month
on the accounting records.
Book credits xxx
 Recorded at different amounts by the Previous month’s debit
bank than in the accounting records. memo (xxx)
 3 Forms of Proof of Cash Outstanding Checks - Ending xxx
1. Adjusted balance method
2. Book to bank method
3. Bank to book method

Computation of Book Balance: Beginning and Ending

Balance per book - Beginning xxx

Add: Book debits during the month xxx
Total xxx
Less: Book credits during the month xxx
Balance per book - Ending xxx

MA-431 Gia Usi

 2

Proof of Cash: Adjusted Balance Method Proof of Cash: Book to Bank Method

Item End of Receipts Payments End of Item End of Receipts Payments End of
Previous (Current (Current Current Previous (Current (Current Current
Month Month) Month) Month Month Month) Month) Month
Balance xxx xxx xxx xxx Balance per xxx xxx xxx xxx
per book book
Credit xxx (xxx) Credit xxx (xxx)
Memo – Memo –
Previous Previous
Month Month
Credit xxx xxx Credit xxx xxx
Memo – Memo –
Current Current
Month Month
Debit (xxx) (xxx) Debit (xxx) (xxx)
Memo – Memo –
Previous Previous
Month Month
Debit xxx (xxx) Debit xxx (xxx)
Memo – Memo –
Current Current
Month Month
Adjusted xxx xxx xxx xxx Deposit in (xxx) xxx
Book Transit –
Balance Previous
Month
Deposit in (xxx) (xxx)
Transit –
Current
Month
Outstanding xxx xxx
Checks –
Previous
Month
Outstanding (xxx) xxx
Checks –
Current
Month
Balance per xxx xxx xxx xxx
Bank

MA-431 Gia Usi

 3

Proof of Cash: Adjusted Balance Method Proof of Cash: Bank to Book Method

Item End of Receipts Payments End of Item End of Receipts Payments End of
Previous (Current (Current Current Previous (Current (Current Current
Month Month) Month) Month Month Month) Month) Month
Balance per xxx xxx xxx xxx Balance per xxx xxx xxx xxx
bank book
Deposit in xxx (xxx) Deposit in xxx (xxx)
Transit – Transit –
Previous Previous
Month Month
Deposit in xxx xxx Deposit in xxx xxx
Transit – Transit –
Current Current
Month Month
Outstanding (xxx) (xxx) Outstanding (xxx) (xxx)
Checks – Checks –
Previous Previous
Month Month
Outstanding xxx (xxx) Outstanding xxx (xxx)
Checks – Checks –
Current Current
Month Month
Adjusted xxx xxx xxx xxx Credit (xxx) xxx
Bank Memo –
Balance Previous
Month
Credit (xxx) (xxx)
Memo –
Current
Month
Debit xxx xxx
Memo –
Previous
Month
Debit (xxx) xxx
Memo –
Current
Month
Balance per xxx xxx xxx xxx
Bank

MA-431 Gia Usi