Name: CHINA ANN REYES

Section: BSA 4

Given are reconciling items for proof of cash of Terramars Company for December 2021. Indicate each item to
what effects will they have on the proof of cash.

1. Check no. 8777 dated November 25, 2021, was entered as P3,000 in payment of a voucher for P30,000.
Upon examination of the checks returned by the bank, the actual amount of the check was P30,000.

2. The December bank statement included a check drawn by another Company for P1,500.

3. Loan amortization of the company P35,000 for November of the erroneously debited by the bank to
another account.

4. Customer's check deposited December 10, returned by bank on December 16 marked NSF,
and redeposited immediately; no entry made on books for return or redeposit

5. Overstatement in book credit in November P5,000.

6. NSF checks in November P20,000.

7. Check # 8729 amounting to P10,000 was received from Tharsis City on December 23, 2021. This was
deposited in the bank on December but it is not yet reflected in the December bank statement.

8. On December 31, 2021 the company placed with the bank a customer’s promissory note with a face value
of P120,000 for collection. The company treated this note as part of its receipts although the bank was
able to collect on the note only in January, 2022.

9. On December 12, the bank erroneously debited our account for P10,000. This was corrected by the bank
after 3 days recording deposit.

10. Interest on the bank loan for the month of December charged by the bank but not recorded in the books,
amounted to P8,000.

SAMPLE: Deposit in Transit on December 2021, P5,000.

Book Bank
Nov. Rec. Dis. End. Nov. Rec. Dis. End.
1 5000 5000 27 000 27 000
2 20000 20000 -1500 -1500
3 35000 35000
4
5
6
7
8
9
10
SAMPLE Increase Increase