A.

Adjusted Balance Method

RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (Effect) (Effect) SHOULD MADE

Unadjusted Balances -
R 1) Deposit-in-transit (Dec) amounting to 100,000 125,000 (25,000) 100,000 100,000 none
125,000 including a post-dated check
of 25,000
D 2) Outstanding check (Dec.) amounting to (75000) (75,000) --- (75,000) (75000) none
75,000
R 3) CM – Note collected by bank (Dec) 50,000 none 50,000 --- 50,000 50,000
amounting to 50,000
D 4) DM – Bank Service Charge (Dec) of (5,000) none (5,000) --- (5,000) (5,000)
5,000
R/D 5) DAIF/DAUD (Dec and Redeposited Dec
• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD none none (10,000) none (10,000)
• Redeposit none none 10,000 10,000

D 6) DAIF/DAUD (Dec not Redeposited Dec)

• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD (10,000) none (10,000) --- (10,000) (10,000)
• Not redeposited
 PER BOOK
DAIF/DAUD (December and Redeposited in December

TRANSACTIONS BALANCE RECEIPTS DISB. BALANCE

(Nov. 30) (Dec. 31) (Dec. 31) (Dec. 31)
1) Remittance Pxxx Pxxx
4) Becomes DAIF/DAUD no entry no entry
5) Redeposit no entry no entry

Adjusted Balances Pxxx Pxxx

PER BANK
TRANSACTIONS BALANCE RECEIPTS DISB. BALANCE
(Nov. 30) (Dec. 31) (Dec. 31) (Dec. 31)
2) Deposit Pxxx Pxxx
3) Becomes DAIF/DAUD Pxxx (xxx)
6) Redeposit xxx Xxx
7) Adjustment (xxx) (xxx)
Adjusted Balances Pxxx Pxxx
 A. Adjusted Balance Method
RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (Effect) (Effect) SHOULD MADE

7) Erroneous Bank Charge (Nov) of 25,000

and written off in December:
D • Nov (bank) balance is understated,
therefore Dec. balance also under 25,000
R • Written off in Dec. bank receipts none none --- none 25,000
been increased (25,000)

D 8) Erroneous Bank Charge (Dec) of 25,000 none none --- 25,000 none (25,000)
written off in Jan.
R 9) Erroneous Bank Credit (Nov) of 30,000
and written off in December:
• Nov balance is overstated,
therefore Dec. balance also over (30,000)
• Written off in Dec. (bank none none --- none (30,000)
disbursements been increased 30,000

R 10) Erroneous Bank Credit (Dec) of 30,000 none none --- (30,000) none 30,000
written off in Jan.
D 11) Check of 1,500 for payment to supplier (1,500) (5,100) 3,600 --- (1,500) (1,500)
been recorded as 5,100
 ERRONEOUS BANK CHARGE
BANK (November)
DISBURSEMENTS (Debit) RECEIPTS (Credit)
Disbursement (over) P xxx
Balance (under)

BANK (December)
DISBURSEMENTS (Debit) RECEIPTS (Credit)
P xxx Receipts (over)
Balance (correct)
 ERRONEOUS BANK CREDIT

BANK (November)
DISBURSEMENTS (Debit) RECEIPTS (Credit)
P xxx Receipts (over)
Balance (over)

BANK (December)
DISBURSEMENTS (Debit) RECEIPTS (Credit)
Disbursement (over) P xxx
Balance (correct)
B. (Unadjusted) Book to (Unadjusted) Bank Balance Method
RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (RIGHT) SHOULD MADE

Unadjusted Balances -
R 1) Deposit-in-transit (Dec) amounting to 100,000 125,000 (125,000) --- 100,000 none
125,000 including a post-dated check
of 25,000
D 2) Outstanding check (Dec.) amounting to (75000) (75,000) 75,000 --- (75000) none
75,000
R 3) CM – Note collected by bank (Dec) 50,000 none 50,000 --- 50,000 50,000
amounting to 50,000
D 4) DM – Bank Service Charge (Dec) of (5,000) none (5,000) --- (5,000) (5,000)
5,000
R/D 5) DAIF/DAUD (Dec and Redeposited Dec
• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD none none (10,000) none (10,000)
• Redeposit none none 10,000 none 10,000

D 6) DAIF/DAUD (Dec not Redeposited Dec)

• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD none none (10,000) --- (10,000) (10,000)
• Not redeposited
B. (Unadjusted) Book to (Unadjusted) Bank Balance Method
RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (Right) SHOULD MADE

7) Erroneous Bank Charge (Nov) of 25,000

and written off in December:
D • Nov (bank) balance is understated,
therefore Dec. balance also under (25,000)
R • Written off in Dec. bank receipts none none 25,000 --- none 25,000
been increased
D 8) Erroneous Bank Charge (Dec) of 25,000 none none (25,000) --- none (25,000)
written off in Jan.
R 9) Erroneous Bank Credit (Nov) of 30,000
and written off in December:
• Nov (bank) balance is overstated,
therefore Dec. balance also over 30,000
• Written off in Dec. (bank none none (30,000) none (30,000)
disbursements been increased ---

R 10) Erroneous Bank Credit (Dec) of 30,000 none none 30,000 --- none 30,000
written off in Jan.
D 11) Check of 1,500 for payment to supplier (1,500) (5,100) 3,600 --- (1,500) (1,500)
been recorded as 5,100
C. (Unadjusted) Bank to (Unadjusted) Book Balance Method
RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (RIGHT) SHOULD MADE

Unadjusted Balances -
R 1) Deposit-in-transit (Dec) amounting to 100,000 125,000 --- 125,000 100,000 none
125,000 including a post-dated check of
25,000
D 2) Outstanding check (Dec.) amounting to (75000) (75,000) --- (75,000) (75000) none
75,000
R 3) CM – Note collected by bank (Dec) 50,000 none --- (50,000) 50,000 50,000
amounting to 50,000
D 4) DM – Bank Service Charge (Dec) of 5,000 (5,000) none --- 5,000 (5,000) (5,000)

R/D 5) DAIF/DAUD (Dec and Redeposited Dec

• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD none none --- 10,000 none (10,000)
• Redeposit none none --- (10,000) none 10,000

D 6) DAIF/DAUD (Dec not Redeposited Dec)

• Remittance/Deposit of 10,000 10,000 10,000 --- --- 10,000 10,000
• Becomes DAIF/DAUD none none --- 10,000 (10,000) (10,000)
• Not redeposited
C. (Unadjusted) Book to (Unadjusted) Bank Balance Method
RECONCILING ITEMS PER BOOK BOOK BANK PER BANK
SHOULD MADE (RIGHT) SHOULD MADE

7) Erroneous Bank Charge (Nov) of 25,000

and written off in December:
D • Nov (bank) balance is understated,
therefore Dec. balance also under 25,000
R • Written off in Dec. bank receipts none none --- (25,000) none 25,000
been increased

D 8) Erroneous Bank Charge (Dec) of 25,000 none none --- 25,000 none (25,000)
written off in Jan.
R 9) Erroneous Bank Credit (Nov) of 30,000
and written off in December:
• Nov (bank) balance is overstated,
therefore Dec. balance also over (30,000)
• Written off in Dec. (bank none none --- 30,000 none (30,000)
disbursements been increased
R 10) Erroneous Bank Credit (Dec) of 30,000 none none --- (30,000) none 30,000
written off in Jan.
D 11) Check of 1,500 for payment to supplier (1,500) (5,100) --- (3,600) (1,500) (1,500)
been recorded as 5,100