PROOF OF CASH

ROMNICK E. BONTIGAO, CPA, CTT, MRITAX, MBA (OG)

PROOF OF CASH

 Proof of cash revolves mostly around Two-Date Bank

Reconciliation in order to gain PROOF that the
CASH recorded truly exists.
Bank Reconciliation

Matching balances of the Entity’s

accounting records for cash, that with the
Bank Records.
Two-Date Bank Reconciliation

It is the same as bank reconciliation, but

with two dates.
The beginning and the ending period.
DEPOSIT IN TRANSIT

Cash (currency, coins, checks, electronic

transfers) that has rightfully been reported in
the balance sheet as cash, but has not yet
been updated at the banks’ books
DEPOSIT IN TRANSIT

If the DIT is from a previous month, it has

already been added to the beginning balance
of the bank because the DIT has been
confirmed and recorded by the bank at
present; therefore is deducted from the
deposits or receipts of the bank.
DEPOSIT IN TRANSIT

If the DIT is in the current month, although

received by the entity, it is not yet recorded
by the bank. It will then be added to the
deposits column and to the bank books total
updated balance.
Outstanding Checks

 These are checks already recorded by the depositor

as cash disbursements, but not yet reflected in the
bank statement.
Outstanding Checks

 o If the Outstanding Check is from the previous

month, deduct from the beginning balance, deduct
from the withdrawals.
Bank Service Charges

 These are charges from the bank in processing the

client transactions.
Bank Credit Memos

 These are items on a company’s bank account

statement that increases a company’s checking
account balances like refunds from previous bank
charges, a note collected by the bank, interest
earned for having money on deposit added by the
bank to the company’s account, etc.
Bank Credit Memos

 These are items on a company’s bank account

statement that increases a company’s checking
account balances like refunds from previous bank
charges, a note collected by the bank, interest
earned for having money on deposit added by the
bank to the company’s account, etc.
NSF “No Sufficient Funds” Checks

 These are checks that have been rejected by the

bank due to insufficient funding of the client bank
balances.
 SAMPLE
PROBLEMS
THANK
YOU!