1.

Demand deposit are current deposits that are

deposit are both interest bearing.
2. Making/adjusting the book and bank balance
3. Monthy statement given by the bank that con
bank.
4. Reconciling item that increases the book bala
5. Recconciling item the decreases the book bal
6. Deposit cash that has not bet cleared or reflec
7. Written checks that are given to the payee bu
8. Deducted in the outstanding check. This are c
9. It is deducted in the outstanding checks.
10. Adjusted balance method, book and bank ba
compared and adjusted to be equal to the bank b
balance.
are current deposits that are withdrawable on demand, it is non-bearing. Time deposit and saving
rest bearing.
the book and bank balance into equal and right amount.
t given by the bank that consist of the deposits, checks, debit and credit memos that are made by the

that increases the book balance.

m the decreases the book balance.
has not bet cleared or reflected in the bank statement.
at are given to the payee but not yet enchased or reflected in the bank statement.
utstanding check. This are checks that are immediately cleared when deposited.
he outstanding checks.
e method, book and bank balance are adjusted to their right balance. Book to bank method, the book is
ed to be equal to the bank balance. Bank to book, the bank is compared and adjusted to be equal to the book
 240,000.00 175,000.00

Book balance
Add:
Note collected by the bank
Total:
Less:
Service Charge
Adjusted

Adjustments:
Cash in bank
Notes Receivable

Service Charge
Cash in bank
 82,000.00 190,000.00

65,000.00 Bank balance 108,000.00

Add:
30,000.00 Deposit in transit 80,000.00
95,000.00 Total: 188,000.00
Less
2,000.00 Outstanding check
93,000.00 Check no. 102 15,000.00
Check no. 105 30,000.00
Check no. 107 50,000.00
Adjusted 93,000.00

30,000.00
tes Receivable 30,000.00

2,000.00
2,000.00
 280,000.00

Book balance

Adjustments
Check No. 768
Cash in bank
Accounts payable

Cash in bank
Error - bank

Check No. 776

Cash in bank

Cash in bank
Collection fee
Note receivable

Book balance
Add: Credit memos
Note receivable
Total:
Less: Debit memos
NSF check
Service charge
Error
Adjusted
 170,000.00 160,000.00 295,000.00

110,000.00 Bank balance 135,000.00

10,000.00
10,000.00
Accounts payable 20,000.00

8,000.00
Error - bank 8,000.00

27,000.00
Cash in bank 27,000.00

45,000.00
5,000.00
Note receivable 50,000.00

110,000.00 Bank balance 135,000.00

Add:
45,000.00 Deposit in transit 60,000.00
155,000.00 Error 8,000.00
Total 203,000.00
10,000.00 Less: Outstanding checks
5,000.00 Check No. 770 20,000.00
27,000.00 Check No. 775 30,000.00
113,000.00 Check No. 777 40,000.00
Adjusted 113,000.00
 6,900,000.00

Book balance
Add: Credit memo
Total:
Less:
Debit memo
adjusted
4,500,000.00 4,355,000.00 7,620,000.00

2,400,000.00 Bank balance 3,265,000.00

270,000.00 Add: Deposit in transit
2,670,000.00

5,000.00
2,665,000.00
Book balance
Add: Credit memos
Collention on notes
Error
Interest on note
Total
Less: Debit memos
Bank service charge
NSF check
Utility bill
Adjusted

Adjustments:
Cash in bank
Notes receivable
Interest on notes
Accounts payable

NSF check
Utility bill
Bank service charge
Cash in bank
 1,405,000.00 Bank balance 5,630,000.00
Add:
2,500,000.00 Deposit in transit 750,000.00
45,000.00 Total: 6,380,000.00
150,000.00 Less:
4,100,000.00 Outstanding checks 1,650,000.00
Error 1,100,000.00
5,000.00 Adjusted 3,630,000.00
220,000.00
245,000.00
3,630,000.00

2,695,000.00
Notes receivable 2,500,000.00
Interest on notes 150,000.00
Accounts payable 45,000.00

220,000.00
245,000.00
5,000.00
Cash in bank 470,000.00
Book balance
Add: Credit memo
Note collection
Outstanding checks
No. 1331
No. 1332
No. 1334
No. 1335
Total:
Less:
Deposit in transit
Debit memos:
Service charge
NSF check
Balance per bank
1,100,000.00

60,000.00

40,000.00
30,000.00
60,000.00
10,000.00
1,300,000.00

270,000.00

5,000.00
25,000.00
1,000,000.00
 Bank balance
Add:
Deposit in transit
Error
Safefy deposit
NSF check
Total
Less:
Outstanding check
Error

Book Balance

Adjustment
NSF check 50,000.00
Cash in bank 50,000.00

Safefy deposit 5,000.00

Cash in bank 5,000.00

Accounts receivable 270,000.00

Cash in bank 270,000.00

Cash in bank 180,000.00

Accounts receivable 180,000.00

Accounts payable 125,000.00

Cash in bank 125,000.00
3,500,000.00

550,000.00
125,000.00
5,000.00
50,000.00
4,230,000.00

650,000.00
270,000.00
180,000.00
3,130,000.00
Book balance
Add:
Proceeds of bank loan
Note collection
Total
Less:
Sevice charge
Customer's check
Adjusted

Adjustments:
Accounts receivable
Cash in bank

Cash in bank
Error - bank

Cash in bank
Error - bank

Cash in bank
Error - bank

Error - bank
Cash in bank

Note collection
Accounts receivable
 2,700,000.00 Bank balance 4,000,000.00
Add:
of bank loan 940,000.00 Deposit in transit 475,000.00
435,000.00 Error 150,000.00
4,075,000.00 Error 90,000.00
Error 200,000.00
10,000.00 Total: 4,915,000.00
50,000.00 Less:
4,015,000.00 Outstanding check 600,000.00
Error 300,000.00
4,015,000.00

50,000.00
Cash in bank 50,000.00

90,000.00
Error - bank 90,000.00

150,000.00
Error - bank 150,000.00

200,000.00
Error - bank 200,000.00

300,000.00
Cash in bank 300,000.00

435,000.00
Accounts receivable 435,000.00
Book balance
Add:
Proceeds of bank loan
Total:
Less:
Petty cash fund
Erroneous payment
Adjusted:
 5,000,000.00 Bank balance 5,500,000.00
Add:
of bank loan 516,000.00 Deposit in transit 300,000.00
5,516,000.00 Erroneous bank charge 50,000.00
Erroneous omission 150,000.00
10,000.00 Total: 6,000,000.00
180,000.00 Less:
5,326,000.00 Outstanding check 544,000.00
Errpneous deposit 130,000.00
Adjusted: 5,326,000.00
Book balance
Add:
Check No. 765
Check No. 555
Total:
Less:
Service charge
NSF check
Adjusted:

Adjustments:
Service charge
NSF check
Cash in bank

Accounts receivable
Sales discount
Accounts receivable

Cash in bank
Accounts payable
Gain
1,300,000.00 Bank balance 1,200,000.00
Add:
20,000.00 Deposit in transit 275,000.00
10,000.00 Total: 1,475,000.00
1,330,000.00 Less:
Outstanding check
5,000.00 No. 761 55,000.00
85,000.00 No. 762 40,000.00
1,240,000.00 No. 763 25,000.00
No. 764 65,000.00
No. 765 50,000.00
Adjusted: 1,240,000.00

5,000.00
85,000.00
90,000.00

40,000.00
30,000.00
10,000.00

10,000.00
20,000.00
10,000.00
Bank balance
Add:
Deposit in transit
Total:
Less:
Outstanding check
Adjusted:
1,805,000.00

325,000.00
2,130,000.00

275,000.00
1,855,000.00 A.
Book balance
Add:
Note collection
Total:
Less:
NSF check
Adjusted:

A. 1,500,000
 850,000.00 Bank balance 2,000,000.00
Add:
750,000.00 Deposit in transit 200,000.00
1,600,000.00 Total: 2,200,000.00
Less:
100,000.00 Outstanding check 400,000.00
1,500,000.00 Erroneous credit 300,000.00
Adjusted: 1,500,000.00
Bank balance
Add:
Deposit in transit
Total:
Less:
Outstanding checks
Erroneous credit
Adjusted
3,800,000.00 Book balance 3,605,000.00
Add:
520,000.00 Bank charges 5,000.00
4,320,000.00 NSF check 50,000.00
Unadjusted: 3,660,000.00 B.
675,000.00
40,000.00
3,605,000.00
Book balance
Add:
Note collection
Interest income
Total:
Less:
NSF check
Bank charges
Adjusted:
1,460,000.00

100,000.00
10,000.00
1,570,000.00

130,000.00
5,000.00
1,435,000.00 A.
Book balance
Less:
Bank charges
NSF check
Adjusted:
955,000.00

15,000.00
40,000.00
900,000.00 A.
Bank balance
Add:
Deposit in transit
Total:
Less:
Outstanding check
Adjusted:
2,800,000.00 D. Book balance 2,540,000.00 C.
Less:
350,000.00 Bank charges 12,000.00
3,150,000.00 Interest expense 10,000.00
Erroneous check 18,000.00
650,000.00 Adjusted: 2,500,000.00 A.
2,500,000.00 A.
Book balance
Add:
Note collection
Total:
Less:
Erroneous entry
NSF check
Bank charges
Adjusted:

950,000.00 180,000.00
250,000.00
20,000.00
950,000.00 450,000.00
500,000.00 C.
8,500,000.00 Bank balance 8,300,000.00
Add:
950,000.00 Deposit in transit 1,000,000.00
9,450,000.00 Less:
Outstanding check 300,000.00
180,000.00 Adjusted: 9,000,000.00
250,000.00
20,000.00
9,000,000.00 C.
Book balance
Add:
Note collection
Proceeds of bank loan
Total:
Less:
Bank charges
DAIF check
Adjusted:
2,120,000.00 A. Bank balance 3,070,000.00 B.
Add:
435,000.00 Bank erro 180,000.00
500,000.00 Deposit in transit 450,000.00
3,055,000.00 Total: 3,700,000.00
Less:
5,000.00 Outstanding check 700,000.00
50,000.00 Adjusted: 3,000,000.00
3,000,000.00
Bank balance
Add:
Deposit in transit
Total:
Less:
Bank error
Outstanding checks
Adjusted:

7,750,000.00
900,000.00
50,000.00
8,700,000.00 A.
8,000,000.00 Book balance 7,070,000.00 A.
Add:
1,200,000.00 Note collection 1,100,000.00
9,200,000.00 Book error 100,000.00
Total: 8,270,000.00
150,000.00 Less:
1,300,000.00 Service charge 20,000.00
7,750,000.00 A. NSF check 500,000.00
Adjusted: 7,750,000.00
Bank balance
Add:
Bank error
Deposit in transit
Total:
Less:
Outstanding check
Adjusted:
 700,000.00 A. Book balance 990,000.00 C.
Add:
270,000.00 Erroneous entry 180,000.00
100,000.00 Total: 1,170,000.00
1,070,000.00 Less:
Service charge 30,000.00
150,000.00 NSF check 120,000.00
920,000.00 B. Loan payment 100,000.00
ADdjusted: 920,000.00