Sassy Company

Bank Reconciliation
June 30

Balance per book, June 30 P1,000,000

Note collected by Bank in June 300,000
Total 1,300,000
NSF Check for June (100,000)
Service Charge for June (4,000)
Adjusted Book Balance 1,196,000

Balance per bank, June 30 1,650,000

Deposit in Transit 400,000
Total 2,050,000
Outstanding Check for June (854,000)
Adjusted bank balance 1,196,000
 Sassy Company
Bank Reconciliation
July 31

Balance per book, June 30 P1,400,000

CM for Bank Loan 500,000
Total 1,900,000
Service Charge for July (1,000)
Adjusted Book Balance 1,899,000

Balance per bank, June 30 2,650,000

Deposit in Transit for July 1,100,000
Total 3,750,000
Outstanding Check for July (1,851,000)
Adjusted bank balance 1,899,000
Computation of Book balance
Balance per book, June 30 1,000,000
Book debits for July 4,000,000
Total 5,000,000
Book credits during (3,600,000)
Balance per Book, July 31 1,400,000

Computation of Bank balance

Balance per bank, June 30 1,650,000
Bank credits for July 3,500,000
Total 5,150,000
Bank debits during July (2,500,000)
Balance per bank, July 31 2,650,000

Computation of Deposit in Transit

Deposit in Transit – June 30 400,000
Cash receipts deposited during July:
Book debits 4,000,000
June CM for note collected, (300,000) 3,700,000
Total 4,100,000
Deposits acknowledged by bank in July
Bank credits 3,500,000
July CM for bank loan (500,000) (3,000,000)
Deposits in Transit – July 31 1,100,000
Computation of Outstanding checks
Outstanding checks – June 30 854,000
Checks drawn by depositor during July:
Book credits 3,600,000
June DMs 104,000 3,496,000
Total 4,350,000
Checks paid by bank during July:
Bank debits 2,500,000
Service Charge for July 1,000 2,499,000
Outstanding checks – July 31 1,851,000