Proof of cash

Celtics Company had the following bank reconciliation on June 30, 2015:

Balance per bank statement, June 30, 2015 P3,000,000

Add: Deposit in transit 400,000
Total 3,400,000
Less: Outstanding checks 900,000
Balance per book, June 30 P2,500,000

The bank statement for the month of July 2015 showed the following:

Deposits (including P200,000 note collected for Celtics) P9,000,000

Disbursements (including P140,000 NSF check and P10,000 service 7,000,000
charge)
All reconciling items on June 30,2015 cleared through the bank in july.
The outstanding checks totaled P600,000 and the deposits in transit
amounted to P1,000,000 on July 31, 2015.

REQUIRED:

Determine the following:

1. Cash receipts per books in July

2. Cash disbursement per books in July
3. Cash balance per books at July 31
4. Adjusted cash balance at July 31

SOLUTION:

Requirement No. 1
9,000,0
Total deposits per bank statement in June 00
(200,0
Note collected by bank in July 00)
(400,0
Deposits in transit, June 30 00)
1,000,0
Deposits in transit, July 31 00
9,400,0
Cash receipts per books in July 00
Requirement No. 2
7,000,0
Total disbursements per bank statement in June 00
(140,0
July NSF check 00)
(10,0
July service charge 00)
(900,0
Outstanding checks, June 30 00)
600,0
Outstanding checks, July 31 00
6,550,0
Cash disbursements per books in July 00

Requirement No. 3
2,500,0
Balance per books, June 30, 2007 00
9,400,0
July receipts per books (see no. 21) 00
(6,550,0
July disbursements per books (see no. 22) 00)
5,350,0
Balance per books, July 31, 2007 00

Requirement No. 4
Balance per bank statement, July 31 (P3M+P9M- 5,000,0
P7M) 00
1,000,0
Deposits in transit, July 31 00
(600,0
Outstanding checks, July 31 00)
5,400,0
Adjusted bank balance, July 31 00

5,350,0
Balance per books, July 31 00
200,0
Note collected by bank in July 00
(140,0
NSF check 00)
(10,0
Bank service charges 00)
5,400,0
Adjusted book balance, July 31 00