Problem 1

Balance per general ledger P2,205,600

Non-cash items:
Customer’s DAIF checks returned by bank P 20,000
Cash in BDO earmarked for purchase of equipment 750,000
IOUs from employees 5,200
Cash in sinking fund 500,000
Customers’ post dated checks 25,400
Travel advances 8,000 1,308,600
Correct cash balance P 897,000

Customers’ DAIF checks, IOUs and customers’ post dated checks are reported as receivables; travel
advances are prepaid expenses; while savings account in BDO and cash in sinking fund are
reported as noncurrent financial assets.


Problem 2
Balance per bank statement P169,263
Deposit in transit, April 30 18,200
Outstanding checks, April 30 ( 59,435)
Erroneous charge by bank 2,200
NSF checks not yet redeposited (3,435 – 1,835) 1,600
Proceeds of note collected by bank ( 7,548)
Bank service charge 180
Unadjusted book balance for cash, April 30, 2022 P124,460


Problem 3
ABC Services, Inc.
Four-Column Reconciliation
November 30-December 31, 2022
December December
Nov. 30 Receipts Disbursements Dec. 31
Balances per bank statement P294,771.00 P1,065,620.00 P1,211,405.00 P148,986.00
Receipts not yet deposited
November 30 21,270.00 (21,270.00)
December 31 32,925.00 32,925.00
Outstanding checks
November 30 (40,525.00) (40,525.00)
December 31 35,191.50 (35,191.50)
Erroneous charge by bank __________ ____________ _____(625.00) _____625.00
Correct balances P275,516.00 P1,077,275.00 P1,205,446.50 P147,344.50

Balances per books P270,311.00 P1,072,850.00 P1,195,536.50 P147,624.50

Bank service charges
November 30 (295.00) (295.00)
December 31 158.00 (158.00)
Interest credit by bank
November 30 5,500.00 (5,500.00)
December 31 4,925.00 4,925.00
Uncollectible customer’s check 5,947.00 (5,947.00)
NSF returned and redeposited
in Dec. 5,000.00 5,000.00
Check #137412 for P2,300
recorded as P3,200 in error __________ ____________ _____(900.00) _____900.00
Correct balances P275,516.00 P1,077,275.00 P1,205,446.50 P147,344.50
Problem 4