Problem 1 (Bank Reconciliation: Unadjusted to Adjusted Balances Format)

(Assume that any errors or discrepancies you find are Garay’s, not the bank’s)

The following data were taken from TARAY’s check register for the month of April. Taray’s bank
reconciliation for March showed one outstanding check, check No. 178 for P1,250 (written on March
20), and one deposit in transit for P4,350 (made on March 31).

Date Item Checks Deposits Balance

April 1 Beginning Balance 6,150
April 1 Deposit 26,167 32,317
April 1 Check No. 179 250 32,567
April 4 Check No. 180 10,673 21,898
April 27 Deposit 11,774 33,672
April 29 Check No. 181 13,217 20,490

The following is from Garay’s bank statement for April:

Date Item Checks Deposits Balance

April 1 Beginning balance 3,950
April 3 Check No. 179 250 3,700
April 3 Deposit 4,350 8,050
April 5 Check No. 180 10,673 (2,623)
April 5 Automatic Loan 8,150 5,527
April 5 Deposit 26,417 31,994
April 20 NSF check 1,000 30,994
April 20 Service charge 600 30,344
April 30 Interest 82 30,426

What is the adjusted cash balance as of April 30?

Ans.: 26,833

Problem 2 (Bank Reconciliation: Bank to Book Format)

The information below relates to CHANG-CHANG COMPANY’s cash in bank:

Balance per bank statement, December 31, 2015 P27,910

Collections recorded but not yet deposited in bank 1,950
NSF check – not recorded on books nor redeposited 2,000
Bank charges not recorded 40
Note collected by bank and not recorded on books 2,800
Outstanding checks 3,000

How much is the cash balance in books of Chang-Chang Company on December 31, 2015?

Ans.: 26,100

Problem 3 (Computation of Outstanding Checks)

The bank reconciliation for December for Donnie Co. included the following information:

Checks and debit memos recorded by bank in December, including a

December service charge of P1,000 P24,320
November bank service charge recorded on the books in December 2,000
Cash disbursements per books during December 34,658
Customer’s NSF check returned by bank in December (no entry on company
books) 16,000
Customer’s NSF check returned by bank in November and redeposited in
December (no entry on company books in either November or December) 7,600
Deposits in transit, December 31 5,421
Outstanding checks, December 31 37,450

The outstanding checks at November 30 totalled:

Ans.: 12,112

Problem 4 (Bank Reconciliation: Unadjusted to Adjusted Balances Format)

Inday Inc. newly hired accountant prepared the following cash reconciliation as of June 30, 2015:

BANK BOOK
Unadjusted balances P268,367 P79,367
Deposits in transit (15,000)
Bank service charges 1,000
Check written and recorded on June 30 but was released on July 4 (12,000)
Outstanding checks 36,000
NSF check 17,000
Loan proceeds (company not informed) 200,000
Erroneous bank debit 15,000
Customers’ checks received on June 29 (all dated July 6). Included in
deposits in transit 9,000
Certified checks 11,000
Unallocated difference 345,000
P477,367 P477,367

The adjusted cash balance for Inday Inc. on June 30, 2015, should be?

Ans.: 264, 367

Problem 5 (Bank Reconciliation: Unadjusted to Adjusted Balances Format)

The following information pertains to Ole Corp.:

Ole Corporation
BANK RECONCILIATION
November 30, 2015
Balance per bank statement P435,000
Less: Outstanding checks
No. 4321 P6,000
4329 15,000
 4340 1,700
4341 4,675 27,375
P407,625
Add: Deposit in transit 16,200
Balance per books P423,825

CHECK REGISTER
December 2015
Date: Dec. Payee No. Voucher Payable Discount Cash
1 San Beda, Inc. 4342 10,000 500 9500
3 Miriam Corp. 4343 4,200 4,200
7 UE Enterprises 4344 3,755 3,755
12 PSBA Corp. 4345 12,000 120 11,880
15 Payroll 4346 96,000 96,000
16 BU, Inc. 4347 6,300 6,300
18 New Era Co. 4348 14,200 142 14,058
21 UST, Inc. 4349 7,000 7,000
22 Petty cash fund 4350 10,000 10,000
28 Payroll 4351 98,000 98,000
261,455 762 260,693

BANK STATEMENT
BANKABLE BANK
PERIOD: NOVEMBER 30, 2015 – DECEMBER 31, 2015
No.: 001-43-75
Date: Dec. Description Check No. Debit Credit Balance
Balance last statement 435,000
1 Cash deposit 16,200 451,200
1 Check issued 4329 15,000 436,200
4 Check issued 4342 9,500 426,700
4 Check issued 4341 4,675 422,025
5 Cash deposit 49,000 471,025
6 Check issued 4343 4,200 466,825
8 Cash deposit 14,000 480,825
10 Check issued 4344 3,755 477,070
15 Encashment 4346 96,000 381,070
22 Encashment 4350 10,000 371,070
28 Encashment 4351 98,000 273,070
29 Debit memo – 1,000 272,070
service charge
29 Credit memo 1,550 273,620
- interest

Deposit in transit at December 31 totalled 49,000.

What is the book receipts for December?

Ans.: 112,000
What is the cash balance per books on December 31, 2015?

Ans.: 275,132

What is the total outstanding checks on December 31, 2015?

Ans.: 46,938

What is the adjusted cash balance on November 30, 2015?

Ans.: 423,825 (There are no book reconciling items in November)

What is the adjusted cash balance on December 31, 2015?

Ans.: 275, 682

Problem 6 (Bank Reconciliation: Unadjusted to Adjusted Balances Format)

Surf Co. was organized on January 2, 2015. The following items are from the company’s trial balance
on December 31, 2015.

Ordinary share capital 1,500,000

Share premium 150,000
Merchandise inventory 69,000
Land 1,000,000
Building 1,400,000
Furniture and fixtures 367,000
Accounts receivable 165,400
Accounts payable 389,650
Notes payable-bank 500,000
Sales 6,235,200
Operating expenses (including depreciation of 1,005,150
400,000)

Additional information is as follows:

1. Deposits in transit, December 31 384,660

2. Service charge for December 2,000
3. Outstanding checks, December 31 475,000
4. Bank balance, December 31 892,000
5. Surf Co.’s mark up on sales is 30%

What is the total collections from the sale?

Ans.: 6,069,800

What is the total payments for merchandise purchases?

Ans.: 4,043,990

What is the total cash receipts per books?

Ans.: 8,219,800

What is the total cash disbursements per books?

Ans.: 7,416,140

What is the cash balance per books on December 31?

Ans.: 803,660

What is the adjusted cash balance on December 31?

Ans.: 801,660

Problem 7 (Computation of cash receipts and disbursements)

In connection with your audit of the cash amount of A Corp., you gathered the following information

Balance per bank, December 1 145,000

Total bank receipts (credits) in December 346,000
Balance per bank, December 31 114,500
Outstanding checks, November 30 (including 67,000
12,000 paid by bank in December)
Outstanding checks, December 31 (including 94,162
checks issued in November)
Deposit in transit, November 30 39,458
A customer’s check received on December 4 11,143
was returned by bank on December 7 marked
“NSF”. It was redeposited on December 8. The
only entry made was to take up the collection
on December 4.

What is the total book receipts in December?

Ans.: 295,399

What is the total bank disbursements in December?

Ans.: 376,500

What is the total book disbursements in December?

Ans.: 392,519

Problem 8 (Proof of Cash: Unadjusted to Adjusted Balances Format)

The following data are assembled by the accountant of the Petronas Company:

Nov. 30, 2015 Dec. 31 2015

Cash account balance 41,175 100,712.50
Bank statement balance 267,705 344,542.50
Deposits in transit 20,502.50 32,200
Outstanding checks 69,295 75,280
Bank service charges 1,800 1,500
NSF check * 20,625
Company’s note receivable collected by 179,537.50 202,250
bank
*Redeposited in the same month. No entries made to take up the return and redeposit.

The bank statement and the company’s cash records show the following totals:

Cancelled checks and debit memos 545,932.50

Cash receipts per cash book 411, 592.50
Checks written per cash book 529,792.50
Deposits and credit memos per bank statement 622,770.00

What is the total book receipts in December?

Ans.: 591,130

What is the total book disbursements in December?

Ans.: 531,592.50

What is the adjusted book balance on November 30?

Ans.: 218,912.50

The adjusted bank receipts in December should be

Ans.: 634, 467.50

The adjusted book disbursements on December should be

Ans.: 551,917.50

What is the adjusted book balance on December 31?

Ans.: 301, 462.50

Problem 9 (Proof of cash: Book to bank balances format)

The auditor of Latrice Company gathered the following information:

1. The November 30 bank statement balance included bank service charges of 2,000
2. The November 30 cash balance in the general ledger was 244,500
3. Outstanding checks on November 30 were 63,000 while undeposited receipts were 36,000
4. The bank service charges as shown in the bank statement totalled 3,000
5. The December 31 cash balance in the general ledger was 319,750, which recognized 482,750
for December receipts and 405,500 for checks written during December. In transit to the
bank were receipts of 28,750. Checks of 15,000 written prior to December and checks of
60,500 written in December had not yet cleared the bank.

What is the total book disbursements for December?

Ans.: 407,500

What is the November 30 bank balance?

Ans.: 269,500

What is the total bank receipts for December?

Ans.: 490,000
What is the bank disbursements in December?

Ans.: 396,000

What is the bank balance in December 31?

Ans.: 363,500

Problem 10 (Proof of Cash: Unadjusted to Adjusted Balances Format)

Raven Co. has a current account in Jujubee Bank. Your audit of the company’s cash account
reveals the following:

1. Balances taken from the company’s general ledger:

Cash balance, Nov. 30, 2015 637,860
Cash balance, Dec. 31, 2015 576,420
Receipts, December 1 – 31 306,220
2. Balances taken from the December bank statement
Bank balance, Nov. 30 685,180
Bank balance, Dec. 31 637,220
Disbursements (debits) 356,080
3. Outstanding checks, Nov. 30 (26,140 was paid by bank
In December) 64,140
4. Checks written and recorded in December; not
Included in the checks returned with the
December bank statement 36,080
5. Deposit in transit, Nov. 30 15,260
6. Deposit in transit, Dec. 31 16,140
7. A bank credit memo was issued in December to
Correct an erroneous charge made in November 1,500
8. Note collected by bank in December (company was
Not informed of the collection) 2,060
9. A check for 2,020 (payable to a supplier) was recorded in
the Check Register in December as 3,000 980
10. A check for 2,240 was charged by the bank as
2,420 in December 180
11. Raven Co. issued a stop payment order to the bank in
December. This pertains to a check written in
December which was not received by the payee.
A new check was written and recorded in the
Check Register in December. The old check was
written off by a journal entry also in December 780
12. Bank service charge, November 30 60

What is the total book disbursements in December?

Ans.: 367,660

What is the total bank receipts in December?

Ans.: 308, 120

What is the total outstanding checks on December 31?

Ans.: 74,080

What is the adjusted bank balance in November 30?

Ans.: 637,800

What is the adjusted book receipts in December?

Ans.: 307,500

What is the adjusted bank disbursements in December?

Ans.: 365,840

What is the adjusted book balance on December 31?

Ans.: 579,460

Problem 11 (Proof of Cash: Unadjusted to Adjusted Balances Format)

Data for Bianca Del Rio, Inc. are shown below:

Nov. 30 Dec. 31
Cash account balance 20,340 48,540
Bank statement balance 107,060 137,820
Deposit in transit 8,200 12,880
Outstanding checks 27,700 30,100
Bank service charges for the month, not shown 720 600
on the company books
NSF checks returned by bank, not shown on 4,300 8,240
company books
Customers, not shown on company books 72,240 80,900

Additional information:

1. Deposits and credit memos per bank statement 249,100

2. Cancelled checks and debit memos per bank statement 218,340
3. Cash receipts per cash book 172,880
4. Checks written per cash books 211,900

What is the total book receipts in December?

Ans.: 245,120

What is the total book disbursements in December?

Ans.: 216,920

What is the adjusted cash balance in November 30?

Ans.: 87,560

What is the adjusted cash balance in December 31?

Ans.: 120,600
What is the adjusted book receipts in December?

Ans.: 253,780

What is the adjusted bank disbursements on December?

Ans.: 220,740