CASH NOT CASH

Includes: a Postage Stamp

a Cash b Post Dated Checks
b Change Fund c NSF Checks
c Petty Cash Fund d. Restricted Deposits
d Current and Savings Account e. Cash Fund - Long Term
e Payroll Account f. Sinking Fund
f Traveler's Check g. Stock Certificate
g Crossed Check h. Stale Checks
h Replenishment Check
i Cash Fund - Current
j Cashier's Check
k Manager's Check
l Unreleased Checks
m Compensating Balance - Not legally Restricted

Cash Equivalents
a. 3-month Commercial Paper or Money Market Placement
b. 3-Month Time Deposit
c. 3-Month Treasury Bill
DATE OF PURCHASE AND MATURITY
DATE OF ISSUANCE NOV. 30
6 MONTHS
DATE OF PURCHASE Mar-01
DATE OF MATURITY May-31
Postage Stamp SELLER
Post Dated Checks INITIAL Cash 100
NSF Checks Sales 100
Restricted Deposits
Cash Fund - Long Term AR 100
Sinking Fund Cash 100
Stock Certificate
Stale Checks Loss/ Misc. Expense 100
Cash 100
BUYER
Inventory 100
Cash 100

Cash 100
AP 100

Cash 100
Misc. Income 100
BANK RECON ITEMS ADJUSTED BALANCE METHOD
a DEPOSIT IN TRANSIT
b OUTSTANDING CHECKS Bank, Unadj. Balance
c ERROS DIT
OC
BOOK RECON ITEMS
a. CREDIT MEMOS Error
NOTES COLLECTED BY BANK Adj. Bank Balance
PROCEEDS OF BANK LOAN
MATURED TIME DEPOSITS Book, Unadj. Balance
b. DEBIT MEMOS Add: Cr Memo
BANK SERVICE CHARGE Notes Coll. By Bank
NO SUFFICIENT FUND Proceeds of Bank Loan
c. ERRORS Matured Time Dep.
Less: Dr. Memos
BSC
NSF

Error
Adj. Book Balance

BUSINESS (MM) - BOOK

Jan 3 Cash in Bank 10000 Jan 5
Accounts Receivable 10000

Jan 31 Cash in Bank 20000 Feb 3

Accounts Receivable 20000

Jan 31 Accounts Payable 5000

Cash in Bank 5000

NSF Cash in Bank ( Check) 30000

Accounts Receivable 30000

Adj. Accounts Receivable 30000

 Cash in Bank ( Check) 30000

Difference - Timing of Recording

RECONCILIATION

Errors = are recon items of the party who committed it.

ED BALANCE METHOD

nadj. Balance xx DEPOSIT IN TRANSIT

xx
(xx) Receipts, Beg
Cr. Memo, Last Month
xx(xx) Cr. Memo, Current Month
nk Balance xx DIT, Last Month
DIT, Current Month
nadj. Balance xx Error
Receipts , End
Notes Coll. By Bank xx
Proceeds of Bank Loan xx OUTSTANDING CHECKS
Matured Time Dep. xx
Disbursement, Unadj.
(xx) Dr. Memo, Last Month
(xx) Dr. Memo, Current Month
OC, Last Month
xx(xx) OC, Current Month
ok Balance xx Error
Disbursement, Adj.

BANK (Imprest Fund System) Cash Management

Cash 10000
Payable - MM 10000

Cash 20000
Payable - MM 20000

Cash 15000
Payable - MM 15000
Adjusted Cash as of January 31
 PROOF OF CASH

Book Bank Last Month Receipt

Bank, Unadj. Balance xx xx
(xx) DIT, Last Month xx (xx)
xx DIT, Current Month xx
(xx) OC, Last Month (xx)
xx OC, Current Month
xx(xx) xx(xx) Error xx(xx) xx(xx)
xx xx Adj. Bank Balance xx xx

Last Month Receipt

Book Bank Book, Unadj. Balance xx xx
Dr. Memo, Last Month xx (xx)
(xx) Dr. Memo, Current Month xx
xx OC, Last Month (xx)
(xx) OC, Current Month
xx Error xx(xx) xx(xx)
xx(xx) xx(xx) Adj. Bank Balance xx xx
xx xx
 TREATMENT OF ERRORS
Disbursement Current Month
xx xx ERRONEOUS RECEIPTS

xx Last Month
(xx)
xx (xx)
xx(xx) xx(xx)
xx xx Current Month

Disbursement Current Month

xx xx
ERRONEOUS DISBURSEMENT
xx
(xx) Last Month
xx (xx)
xx(xx) xx(xx)
xx xx
Current Month
TREATMENT OF ERRORS

ERRONEOUS RECEIPTS
Last Month Receipt Disbursement
Last Month
Corrected Last Month - - -
Corrected Current Month (xx) - (xx)

Current Month
Corrected Current Month - (xx) (xx)
Corrected Next Month - (xx) -

ERRONEOUS DISBURSEMENT
Last Month Receipt Disbursement
Last Month
Corrected Last Month - - -
Corrected Current Month xx (xx) -

Current Month
Corrected Current Month - (xx) (xx)
Corrected Next Month - - (xx)
Current Month

-
-

-
(xx)

Current Month

-
-

-
xx
MM Company
CASH IN BANK Additional Info:
Dec-01 Balance 100000 Dec-01 Check No. 771 20000 1. Mm Company reconciled i
6 Deposit 30000 4 772 5000 No. 768 for 10,000 and No. 7
12 Deposit 40000 6 773 35000 2. Check No. 1042 was drawn
24 Deposit 50000 10 774 15000 3. Check No. 776 was correct
31 Deposit 60000 14 775 30000 The amount 25,000 was ente
18 776 25000 4. The bank credit on Decem
24 777 40000 less a collection fee of 5,000
Balance 110000 5. The NSF Check was receive

BANK STATEMENT Bank DIT

Date Checks Deposit Balance Bank OC
Dec-01 Balance 130000 Book ERROR
Check No. 768 10000 120000 Bank OC
1 771 20000 100000 Book NSF
4 772 5000 95000 Book BSC
6 773 35000 30000 90000 Book CM - Notes
12 774 15000 40000 115000 Bank OC
12 776 52000 63000 Bank ERROR
24 1042 8000 50000 105000
28 NSF Check 10000 45000 CM 140000
28 Service Charge 5000 135000
Additional Info:
1. Mm Company reconciled its bank balance on Nov. 30 with two checks
No. 768 for 10,000 and No. 770 for 20,000 outstanding
2. Check No. 1042 was drawn by MN Company
3. Check No. 776 was correctly drawn for 52,000 in payment of account
The amount 25,000 was entered in the books of original entry
4. The bank credit on December 28 reprsents the proceeds of a 50,000 note,
less a collection fee of 5,000 collected by bank and credited to the account.
5. The NSF Check was received from a customer in payment of account

Bank, Unadj. Balance 135,000.00

60000 DIT 60,000.00
30000 775 OC Check 770 20,000.00
27000 775 30,000.00
40000 777 777 40,000.00 - 90,000.00
10000 Error 8,000.00
5000 Adj. Bank Balance 113,000.00
45000
20000 770 Book, Unadj. Balance 110,000.00
8000 Add: Cr Memo
Notes Coll. By Bank 45,000.00
Proceeds of Bank Loan -
Matured Time Dep. -
Less: Dr. Memos
BSC - 5,000.00
NSF - 10,000.00

Error - 27,000.00
Adj. Book Balance 113,000.00
In preparing its August 31, 2007 bank reconciliation, Adel Corp. has available th
ing information:
Balance per bank statement, 8/31/07
Deposit in transit, 8/31/07
Return of customer's check for insufficient funds, 8/30/07
Outstanding checks, 8/31/07
Bank service charges for August
At August 31, 2007, Adel's correct cash balance is

ANSWER
rp. has available the follow-

21,650
3,900
600
2,750
100

22,800