Assignment in Chapter 3

1. What is two-date bank reconciliation?

- It involves two dates and the procedures followed in solving for the
adjusted cash balance is just the same with one-date bank
reconciliation.
2. Explain book debits.
- It refers to cash receipts or all items debited to the cash in bank
account.
3. Explain book credits.
- It refers to cash disbursements or all items credited to the cash in bank
account.
4. Explain bank debits.
- Refers to all items debited the account of the depositor which include
checks paid by bank and debit memos.
5. Explain bank credits.
- Refers to all items credited to the account of the depositor which
include deposits acknowledged by bank and credit memos.
6. What is the formula in the computation of balance per book?
- Balance per book – beginning of month xx
Add: Book debits during the month xx
Total xx
Less: Book credits during the month xx
Balance per book – end of the month xx
7. What is the formula in the computation of balance per bank?
- Balance per bank – beginning of month xx
Add: Bank credits during the month xx
Total xx
Less: Bank debits during the month xx
Balance per bank – end of month xx
8. What is the formula in the computation of deposits in transit?
- Deposits in transit – beginning of month xx
Add: Cash receipts deposited during the month xx
Total deposits to be acknowledged by bank xx
Less: Deposits acknowledged by bank during month xx
Deposits in transit – end of month xx
9. What is the formula in the computation of outstanding checks?
- Outstanding checks – beginning of month xx
Add: Checks drawn by depositor during the month xx
Total checks to be paid by bank xx
Less: Checks paid by bank during the month xx
 Outstanding checks – end of month xx

10. What is a proof of cash?

- Is an expanded reconciliation in that it includes proof of receipts and
disbursements.

Prepared By:
Rejie N. Ando (BSA 1)