Bank

Reconciliation
Part 2
Lesson 7
Problem 1: Beauty & Bounty, Inc.
Unadjusted Balance per Bank Php 365, 601.78
Unadjusted Balance per Book Php 388, 047.00
Deposit in Transit, 11/30 Php 25, 850.00
Outstanding Check , 11/30 Php 5, 601.78
Notes Collected by the bank Php 24, 752.00
DAUD Check Php 26, 649.00
Bank Charges Php 300.00

Prepare the Bank Reconciliation Statement for the month of November.

 Beauty & Bounty, Inc.
Bank Reconciliation Statement
November 30, 2020
Book Bank
Unadjusted Balance P388,047.00 Unadjusted Balance P365,601.78
Add: Notes Collected 24,752.00 Add: DIT 25,850.00
Less: DAUD Check 26,649.00 Less: OC 5,601.78
Less: Bank Charges 300.00 Adjusted Balance P385,850.00
Adjusted Balance P385,850.00
Problem 2: StarLink Corporation
Unadjusted Balance per book and bank: Php 72, 166 and Php 95, 347.50.
1. Deposit in Transit as at April 30 amounted to P31, 407.50.
2. Oustanding checks as at April 30 totaled P14, 679.
3. The bank erroneously charged a P3, 250 Check of StarBeam, Co.
against the StarLink bank account.
4. A P250 bank service charge has not yet been recorded in the books.
5. StarLink neglected to record P40,000 borrowed from bank on a 10%
six-month note. The bank statement has already credited the P40, 000.
6. Included with the paid checks is a memo indicating that Mike Benter’s
check for P6, 400 had been returned DAIF.
7. StarLink recorded a P1, 090 payment for repairs as P10, 900.
 StarLink Corporation
Bank Reconciliation Statement
April 30, 2020
Book Bank
Unadjusted Balance P72,166.00 Unadjusted Balance P95,347.50
Less: Bank Charges 250.00 Add: DIT 31,407.50
Add: Bank Loan 40,000.00 Less: OC 14,679.00
Less: DAIF Check 6,400.00 Add: Bank Error 3,250.00
Add: Book Error 9,810.00 Adjusted Balance P115,326.00
Adjusted Balance P115,326.00
Problem 3: Real You, Inc.
Unadjusted balance per book and bank: P57,815 and P68,586.
1. The statement included a debit memo of P300 for the cost of 2 checkbooks.
2. Cash sales of P8,361.50 on May 12 were deposited in the bank. The cash receipt journal entry and
the deposit slip were incorrectly made for P8,461.50. The bank credited Real You, Inc. for the
correct amount.
3. Outstanding Check and Deposit in Transit at May 31 totaled P12,762.50 and P9,361.50 respectively.
4. On May 18, the company issued check no. 1989 for P6,580 to Mean You Co. on account. The check,
which cleared the bank in May, was incorrectly journalized and posted by Real You for P6,850.
5. A P20,000 note receivable was collected by the bank for Real You, Inc. on May 31 plus P800 interest.
The bank charged a collection fee of P200. The only entry made in May by the company for the note
was to accrue interest through May 31.
6. Included with the cancelled checks was a check issued by the Monaco Tobacco to Fast Forwarders
for P6,000 that was incorrectly charged to the Real You, Inc.
7. On May 31, the bank statement showed a DAIF charge of P7,100 for a check issued by Villar Realty, a
customer, to Real You, Inc. on account.
 Real You, Inc.
Bank Reconciliation Statement
May 31, 2020
Book Bank
Unadjusted Balance P57,815.00 Unadjusted Balance P68,586.00
Less: Bank Charge 300.00 Less: OC 12,762.50
Less: Book Error 100.00 Add: DIT 9,361.50
Add: Book Error 270.00 Add: Error 6,000.00
Add: Notes Receivable 20,000.00 Adjusted Balance P71,185.00
Add: Interest Income 800.00
Less: Bank Charge 200.00
Less: DAIF Check 7,100.00
Adjusted Balance P71,185.00