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Quiz Bank Recon and Proof of Cash
Quiz Bank Recon 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:
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.
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.
The accountant of NARCISA CO. provided the following data in reconciling the April 30 cash in bank balance:
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.
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? ____________________________________
In your checking of HARRY INC.'s cash account as of December 31, 2016, you ascertain the following information:
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.
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? ____________________________