EXERCISES

BANK RECONCILIATION, PROOF OF CASH

1. The information below is from the books of the Shae Corporation on June 30:

Balance per bank statement P11,164

Receipts recorded but not yet deposited in the 1,340
bank
Bank charges not recorded 16
Note collected by bank and not recorded on 1,120
books
Outstanding checks 1,100
NSF checks--not recorded on books nor 160
redeposited

Assuming no errors were made, compute the cash balance per books on June 30 before any
reconciliation adjustments.

2. The books of Robb's Service, Inc. disclosed a cash balance of P68,757 on June 30. The bank
statement as of June 30 showed a balance of P54,780. Additional information that might be useful in
reconciling the two balances follows:

(a) Check number 748 for P3,000 was originally recorded on the books as P4,500.
(b) A customer's note dated March 25 was discounted on April 12. The note was
dishonored on June 29 (maturity date). The bank charged Robb's account for
P14,265, including a protest fee of P42.
(c) The deposit of June 24 was recorded on the books as P2,895, but it was actually a
deposit of P2,700.
(d) Outstanding checks totaled P9,885 as of June 30.
(e) There were bank service charges for June of P210 not yet recorded on the books.
(f) Robb's account had been charged on June 26 for a customer's NSF check for
P1,296.
(g) Robb properly deposited P600 on June 3 that was not recorded by the bank.
(h) Receipts of June 30 for P13,425 were recorded by the bank on July 2.
(i) A bank memo stated that a customer's note for P4,500 and interest of P165 had
been collected on June 27, and the bank charged a P36 collection fee.

Prepare a bank reconciliation statement, using the form reconciling bank and book balances to the
correct cash balance.

3. The Rickon Manufacturing Company received its bank statement for the month ending May 31. The
bank statement indicates a balance of P32,400. The cash account as of the close of business on May
31 has a balance of P8,350. In reconciling the balances, the following items are discovered.

(a) Collection by bank of note for P1,500 less collection fees of P250.
(b) Deposits in transit, P51,000.
(c) The bank charged the depositor P800 for overdrafts.
(d) Checks outstanding on May 31, P79,100.
(e) A canceled check issued to Scott Corp. for P4,500 was not recorded on Rickon
Company's books.

Prepare a bank reconciliation statement. (Use the format of reconciling bank and depositor figures to
corrected cash balance.)

4. The accountant for the Sansa Company assembled the following data:

June 30 July 31
Cash account balance P 15,822 P 39,745
Bank statement balance 107,082 137,817
Deposits in transit 8,201 12,880
Outstanding checks 27,718 30,112
Bank service charge* 72 60
Customer's check deposited July 10, 8,250
returned by bank on July 16 marked NSF,
and redeposited immediately; no entry
made on books for return or redeposit
Collection by bank of company's notes 71,815 80,900
receivable
* (Recorded on books in month following charge or collection)

The bank statements and the company's cash records show these totals:

Disbursements in July per bank statement P218,373

Cash receipts in July per Sansa's books 236,452
Checks written in July per Sansa's books 212,529
Receipts in July per bank statement 249,108

Prepare a 4-column bank reconciliation as of July 31, using the form that reconciles both the book and
bank balances to a correct cash amount.

5. Arya Company deposits all receipts and makes all payments by check. The following information is
available from the cash records:

MARCH 31 BANK RECONCILIATION

Balance per bank P26,746

Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books P25,046

Month of April Results

Per Bank Per Books
Balance April 30 P27,995 P24,355
April deposits 10,784 12,889
 April checks 11,100 13,080
April note collected (not included in April deposits) 3,000 -0-
April bank service charge 35 -0-
April NSF check of a customer returned by the bank
(recorded by bank as a charge) 900 -0-

Instructions
(a) Calculate the amount of the April 30:
1. Deposits in transit
2. Outstanding checks
(b) What is the April 30 adjusted cash balance?