Assuming the following are provided with you for Company X:

Cash in bank per ledger Bank Statement for February

Jan 31 balance 50,000 Jan. 31 Balance 84,000

Bank credits for February including CM for note collected of

Book debits for February, includes January CM for note collected of P15,000 200,000 P20,000 and January deposit in transit of P40,000 170,000
Book credits for February including NSF check of P5,000 and service Bank debits for February including NSF check of P10,000 and
charge of P1,000 for January -180,000 January outstanding check of P65,000 -130,000
FEBRUARY BOOK BALANCE 70,000 FEBRUARY BANK BALANCE 124,000

REQUIRED: January and February Bank Reconciliation

1 JANUARY BANK RECONCILIATION

Balance per book, January 31 50,000 Balance per bank 84,000

Add: Note collected for January 15,000 Add: Deposit in transit 40,000
Less: Charges for January - 6,000 Less: Outstanding Checks -65,000
ADJUSTED BOOK BALANCE 59,000 ADJUSTED BANK BALANCE 59,000 0

2 FEBRUARY BANK RECONCILIATION

Balance per book, Feb 28 70,000 Balance per bank 124,000

Note collected by Bank 20,000 Add: Deposit in transit (see below) 75,000
Less: Charges by the bank -10,000 Less: Outstanding Checks (see below) -119,000
ADJUSTED BOOK BALANCE 80,000 ADJUSTED BANK BALANCE 80,000 0

DEPOSIT IN TRANSIT, JAN. 31 40,000

 Book debits for February 185,000
Less: Bank credits for February (Client's deposits ) -150,000
Alternative Computation for FEBRUARY DIT: DEPOSIT IN TRANSIT, FEB. 28 75,000
Book debits presumed to be deposited to the bank 185,000
Bank credits (book debits acknowledge or cleared by the bank ) -110,000 OUTSTANDING CHECKS, JAN. 31 65,000
DEPOSIT IN TRANSIT, FEBRUARY 28 75,000 Book Credits for February 174,000
Less: Bank Debits for February (Client's withdrawals ) -120,000
Alternative Computation for FEBRUARY OC: OUTSTANDING CHECKS, FEB. 28 119,000
Book credits or checks drawn by Company X 174,000
Bank debits (book credits paid by the bank) - 55,000
OUTSTANDING CHECKS, FEBRUARY 28 119,000
FOR THE MONTH OF FEBRUARY
FOR THE MONTH OF JANUARY
PROOF OF CASH

JANUARY RECEIPTS DISBURSEMENT FEBRUARY

Balance per Book 50,000 200,000 180,000 70,000

ADD Note collected

January 15,000 -15,000

February 20,000 20,000

LESS NSF Check

January -5,000 -5,000

February 10,000 -10,000

Service Charge
January -1,000 -1,000
February
ADJUSTED BALANCE 59,000 205,000 184,000 80,000 0

Balance per Bank 84,000 170,000 130,000 124,000

ADD Deposit in transit
January 40,000 -40,000
February 75,000 75,000
LESS Outstanding Check
January -65,000 -65,000
February 119,000 -119,000
ADJUSTED BALANCE 59,000 205,000 184,000 80,000 0
0 0 0 0
We deduct 15,000 in february receipts as this was reflected only in February but does
not pertain to February receipts
We add P15,000 in January, as it is a Reconciling item for the said month
We add P20,000 in the receipts and February columns as it is a reconciling item for the
month

We deduct P5,000 under disbursement for the month of February as this was included
in February disbursements but actually pertains to the month of January
P10,000 added to disbursement for the month in February, as this is a valid addition to
disbursement for the said month but has the effect of decreasing the cash balance for
February