INTERMEDIATE ACCOUNTING I

-BANK RECONCILIATION &

Proforma Reconciliation Adjusted book balance XX

Error (XX)
BOOK BALANCE
Adjusted book balance XX
Unadjusted Book Balance XX
Add: Credit Memos XX
DEPOSIT IN TRANSIT (DIT)
Error XX
Total XX
DIT - Beginning of the month xx
Less: Debit Memos (XX)
Add: Cash receipts deposited xx
Error (XX)
Less: Deposits acknowledged by the bank (xx)
Adjusted book balance XX
DIT – Ending balance xx
BANK BALANCE
OUTSTANDING CHECKS (OC)
Unadjusted Bank Balance XX
Add: Deposit in Transit XX
OC - Beginning of the month xx
Error XX
Add: Checks drawn during the month xx
Total XX
Less: Checks paid by the bank (xx)
Less: Outstanding Check (XX)
DIT – Ending balance xx
Error (XX)

PROBLEM I: Cone Company provided the following data for the purposes of reconciling the cash balance per book with
the balance per bank statement on December 31:

Balance per book P1,700,000

Balance per bank statement 4,200,000
Outstanding checks, including certified check of P300,000 1,000,000
Deposit in transit 200,000
December NSF checks, of which P100,000 had been
redeposited and cleared on December 27 300,000
Erroneous credit to Cone's account, representing proceeds
of loan granted to another company 700,000
Proceeds of note collected by bank for Cone, net of
service charge of P40,000 1,500,000

What is the amount of cash-in-bank at year end?

PROBLEM II: Able Company received the bank statement for the month of March. However, the closing balance of the
account was unreadable. Attempts to contact the bank after office hours did not secure the desired information.

February 28 book balance 1,460,000

Note Collected by bank 100,000
Interest earned on note 10,000
NSF check of customer 130,000
Bank Service Charge on NSF Check 2,000
Other bank service charge 3,000
Outstanding Check 200,000
Deposits of February 28, placed in night depository 85,000
Check issued by Axle Company charged to Ables’s account 20,000

What amount was reported as cash balance per bank statement?

PROBLEM III: Jane Company provided following information at month-end:

Cash in bank per bank statement 8,000,000

Deposit in transit 1,200,000
Outstanding checks, including certified check of P200,000 1,500,000
Amount erroneously credited by bank to Jane's account 150,000
Note collected by bank for Jane Company,
Including interest of P100,000 1,100,000
Service charge for the current month 20,000
NSF checks of customers returned by bank 500,000
Error in recording a check in the book. The correct
amount as paid by the bank is P100,000
instead of P200,000 as recorded in the book 100,000
Saving deposit in another bank closed by BSP 1,000,000
Currency and coins on hand 900,000
Petty cash fund 50,000

Requirement:
1. Compute the adjusted cash in bank at month-end.
2. What amount was reported as unadjusted cash in bank per ledger at month-end?
3. Compute the amount of cash that should be reported as current asset.
PROBLEM IV: Boracay Company kept all cash in a checking account. An examination of the bank statement for the month
of December revealed a bank statement balance of P8,470,000.

A deposit of P950,000 placed in the bank's night depository on December 29 does not appear on the bank statement.

Checks outstanding on December 31 totaled P270,000.

The bank statement showed that on December 25 the bank collected a note for Boracay Company and credited the
proceeds of P935,000 to the entity's account net of P 15,000 service charge.

Boracay Company discovered that a check written in December for P183,000 payment of an account had been recorded
as P138,000.

Included with the December 31 bank statement was an NSF check for P250,000 that Boaracay Company had received
from a customer on December 20.

The bank statement showed a P15,000 service charge for December.

Required: Compute the following

1. Adjusted cash in bank on December 31

2. Unadjusted balance per book on December 31
3. Net Adjustment to Cash in Bank