Name: _____________________________________________ Date: ______________

Year & Section: _____________________________________

QUIZ # 2 Bank Reconciliation and Proof of Cash

1. It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank
statement into agreement.
a. Bank statement c. Bank Reconciliation
b. Check Disbursement Voucher d. Bank Statement
2. These are deposits made but not yet credited by the bank to the depositor’s bank account.
a. Credit memos (CM) c. Outstanding checks (OC)
b. Debit memos (DM) d. Deposits in transit (DIT
3. Which of the following represents a debit memo?
a. Collections made by the bank on behalf of the depositor.
b. Interest income earned by the deposit.
c. Loan proceeds directly credited or added by the bank to the depositor’s account.
d. Interest expense on a loan that is directly deducted from the depositor’s account.
4. Which of the following represents a debit memo?
a. Collections made by the bank on behalf of the depositor.
b. Interest income earned by the deposit.
c. Loan proceeds directly credited or added by the bank to the depositor’s account.
d. Interest expense on a loan that is directly deducted from the depositor’s account.
5. These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
a. Credit memos (CM) c. Outstanding checks (OC)
b. Debit memos (DM) d. Deposits in transit (DIT)
6. Which of the following is not a debit memo?
a. Bank service charges
b. No sufficient funds checks (NSF)
c. Automatic debits representing payments of bills by the bank on behalf of the depositor
d. Direct deposits of customers to the depositor’s account

Stark Industry’s accountant is preparing its October bank reconciliation and has collected the following data:

Per Books Per Bank

Oct. 1 balance P11, 600 P10, 000

Oct. deposits 24, 600 21, 200
Oct. checks 27, 800 29, 000
Note Collected (plus 10% interest) 0 4, 400
Oct. service charge 0 20
Oct. 31 balance --------- 6, 580
Additionally, deposits in transit and outstanding checks from September reconciliation were P4, 400 and P2, 800,
respectively.

7. The correct cash balance at October 31 should be:

a. P10, 960 b. P12, 780 c. P11, 180 d. P3,980
8. The cash balance per book amounted to?
a. P8, 400 b. P9, 400 c. P8 980 d. P9, 880

Samsung Inc. uses four-column bank reconciliation. The bank reconciliation for March shows outstanding checks for
P300. During April, the company wrote check totaling P23, 600. The bank statement for April shows P23, 010 of checks
clearing the company’s account.

9. The amount of outstanding checks on April bank reconciliation must be:

a. P890 b. P600 c. P300 d. P1, 200

Nintendo Co. reported a balance of P14, 300 in its cash account at the end of the month. There were P12, 000 deposits
in transit and P11, 500 of checks outstanding. The bank statement showed a balance of P15, 000. Service charge of P600,
and the collection of a note plus interest. The note had a face value of P1, 500.

10. How much interest did the company collect?

a. P1, 800 b. P300 c. P2, 400 d. P1, 200

The accountant of NARCISA CO. provided the following data in reconciling the April 30 cash in bank balance:

Balance per bank, April 30 P130, 350

Balance per books, April 30 85, 000
 Bank service charge 2, 000
Deposits in transit 49, 000
Outstanding checks 17, 650
Note collected by bank including P1, 200 interest-
(Narcisa Co. not yet informed) 136, 000
Check drawn by XYZ Co. erroneously charged-
by bank to Narcisa's account 54, 600
A transposition error was made in recording a sale and deposit in the sales journal and cash receipts journal in April.

Correct amount P13, 658

Recorded as P16, 358
11. What is the adjusted cash balance on April 30? ______________________________________

The Cash account shows a balance -of P225, 000 before reconciliation. The bank statement does not include a deposit of
P11, 500 made on the last day of the Month. The bank statement shows a collection by the bank of P4, 700 and a
customer's check for P1, 600 was returned because it was NSF. A customer's check for P2, 250 was recorded on the
books as P2, 700, and a check written for P395 was recorded as P485.

12. What should be the correct cash balance? __________________________________

On July 5, 2016, EMILIA CORP: received its bank statement for the month ending June 30. The statement showed a P209,
500 balance while the cash account balance on June 30 was P35, 000. In reconciling the balances, the auditor discovered
that:

 The June 30 collections of P 176, 000 were recorded on the books but were not deposited until July.
 The bank service charges for the month of June totaled P3, 000.
 A paid check forP24, 300 was entered incorrectly in the cash payments journal as P34, 200.

13. What is the total outstanding checks at June 30, 2016? ____________________________________

Proof of Cash: Unadjusted to Balances Format

In your checking of HARRY INC.'s cash account as of December 31, 2016, you ascertain the following information:

The bookkeeper's bank reconciliation on November 30, 2016, is as follows:

Balance per bank statement, November 30, P24, 298

Add: Deposits in transit 3, 648
Total 3, 648
Less: Outstanding checks
No. 3408 P440
No. 3413 300
No. 3414 6, 820
No. 3416 3, 924
No. 3417 800 12, 284
Balance P15, 662
Add: Bank service charge for November 36*
Balance per general ledger, November 30 15, 698

*Entered in check register in December

The Cash Receipts Journal shows total receipts for December of P371, 766. The Check Register reflects total checks
issued in December of P377, 632. A collection of P5, 912 was recorded on company books on December 31 but was not
deposited until January 2, 2017.

The balance per bank statement at December 31, 2016, is P 17, 516. This statement shows total receipts of P373, 502
and checks paid of 380, 284.

Your examination reveals the following additional information:

 Check no. 3413 dated November 24, 2016, was entered in the Check Register as P300. Your examination of the
paid checks returned with the December bank statement reveals that the amount of this check is P30.
 Check no. 3417 was mutilated and returned by the payee. A replacement check (no. 3453) was issued. Both
checks were entered in the Check Register but no entry was made to cancel check no. 3417.
 The December bank statement includes an erroneous charge Of P480.
 On January 3, 2017, the bank informed your client that a December bank service charge of P42 was omitted
from the statement.
 Your examination of the bank credit memo accompanying the December bank statement discloses that it
represents proceeds from the note receivable collection in December for P4, 000.
 The outstanding checks at December 31, 2016, are as follows:
No. 3408: P440 No. 3418: P2, 814
No. 3417: P800 No. 3419: P5, 788

14. What is the total book disbursements for the month of December? _______________________
15. What is the book balance at December 31? ______________________________
16. The outstanding checks at December 31 totaled? _____________________________
17. What is the adjusted bank balance on November 30? ______________________________
18. The adjusted book receipts for the month of December should be? ___________________________
19. The adjusted book disbursements for the month of December should be? ________________________
20. What is the adjusted book balance on December 31? ____________________________