Example solution of bank reconciliation with greater unadjusted bank balance statement than

adjusted cash balance.

*ADJUSTED BALANCE METHOD*

Balance per bank statement P 1,500,000.00 greater

(unadjusted)
Add: Receipts not yet deposited
(deposit in transit)
Erroneous charge by bank
Total
Deduct: Outstanding checks (P 500,000.00) Squeeze
Erroneous credit by bank
Adjusted cash balance P 1,000,000.00

 Debit memos and credit memos are BOOK RECONCILING ITEMS. So basically we then
disregard this from the choices.
 Deposit in transit is an addition adjustment in bank statement so means you also
need to disregard this cause your bank balance is already overstated.
 Other items in the form/template such as Erroneous credited or charged is not
included in the choices.
 So the best answer and the most certainly caused of the overstatement is the
OUTSTANDING CHECKS.
 MODULEACCOUNTING FOR GOVERNMENT AND
-PROFIT
NON ORGANIZATIONS

CHAPTER 6

ACTIVITY/ASSIGNMENT
(5 pts)

1. If the unadjusted balance of cash per bank statement is greater than the adjusted
balance and there no other reconciling items or errors, the difference would most
certainly be caused by a
a. Credit memo c. Deposits in transit
b. Debit memo d. Outstanding checks

Give solutions.