Espenilla Company correctly prepared the following bank reconciliation for the month of December:

Balance per bank statement P 3,000,000

Deposit in Transit 200,000

Checkbook printing charge 35,000

Error made by Espenilla in recording a check issued in December 35000

NSF check 110,000

Outstanding check (100,000)

Note collected by bank including P15,000 interest (215,000)

Balance per book P3,065,000

Cash on hand at year-end P 200,000

What total amount of cash should be reported?

a) 3,300,000
b) 3,265,000
c) 3,165,000
d) 2,865,000

Solution:

Balance per bank statement P 3,000,000

Add: Deposit in Transit 200,000

Cash on hand at year-end 200,000

Total: 3,400,000

Less: Outstanding check 100,000

P 3,300,000