Problem 3-5

Required: Prepare a proof of cash for the month of April following the three forms of Proof of cash.

ADJUSTED BALANCE METHOD

EFFICIENT COMPANY
PROOF OF CASH
For the month of April

March 31 Receipts Disbursement April 30

Balance per book 200,000 800,000 720,000 280,000
Note collected:
March 60,000 [60,000]
April 100,000 100,000
NSF Check
March [20,000] [20,000]
April 30,000 [30,000]
Service Charge
March [8,000] [8,000]
April 2,000 [2,000]
Adjusted book balance 232,000 840,000 724,000 348,000

Balance per bank 330,000 700,000 530,000 500,000

Deposit in transit
March 80,000 [80,000]
April 220,000 220,000
Outstanding Check
March [178,000] [178,000]
April 372,000 [372,000]
Adjusted bank balance 232,000 840,000 724,000 348,000
 BOOK TO BANK BALANCE

EFFICIENT COMPANY
PROOF OF CASH
For the month of April

March 31 Receipts Disbursement April 30

Balance per book 200,000 800,000 720,000 280,000
Note collected:
March 60,000 [60,000]
April 100,000 100,000
NSF Check
March [20,000] [20,000]
April 30,000 [30,000]
Service Charge
March [8,000] [8,000]
April 2,000 [2,000]
Deposit in transit
March [80,000] 80,000
April [220,000] [220,000]
Outstanding Check
March 178,000 178,000
April [372,000] 372,000
Balance per bank 330,000 700,000 530,000 500,000

BANK TO BOOK BALANCE

EFFICIENT COMPANY
PROOF OF CASH
 For the month of April

March 31 Receipts Disbursement April 30

Balance per bank 330,000 700,000 530,000 500,000
Deposit in transit
March 80,000 [80,000]
April 220,000 220,000
Outstanding Check
March [178,000] [178,000]
April 372,000 [372,000]
Note collected:
March [60,000] 60,000
April [100,000] [100,000]
NSF Check
March 20,000 20,000
April [30,000] 30,000
Service Charge
March 8,000 8,000
April [2,000] 2,000
Balance per book 200,000 800,000 720,000 280,000