BANK RECONCILIATION

Sample Problem 1

Entity A
Bank Reconciliation
For the month ended November 30, 20x1

Balance per books, end. 600,000 Bal. Per bank statement, end.
Add: Credit Memos (CM) 380,000 Add: Deposits in Transit (DIT)
Less Debit Memos (DM) (60,000) Less Outstanding checks (OC)
Adjusted Balance 920,000 Adjusted Balance

Sample Problem 2
a. BANK RECONCILIATION
Entity A
Bank Reconciliation
For the month ended February 28, 20x1

Balance per books, end. 260,000 Bal. Per bank statement, end.
Add: Credit Memos (CM) 380,000 Add: Deposits in Transit (DIT)
Less Debit Memos (DM) (60,000) Less Outstanding checks (OC)
Adjusted Balance 580,000 Adjusted Balance

b. ADJUSTING ENTRIES

a. Cash in Bank 30,000 Credit Memos

Accounts Receivable 30,000

d. Accounts Receivable 5,000 Debit Memos

Cash in Bank 5,000

b. Cash 102,500 Deposits in Transits

Entity A 102,500

c. Entity A 22,500 Outstanding checks

Cash 22,500

Exercise 1.3
 Entity A
Bank Reconciliation
For the month ended December 31

Balance per books, end. 2,700,000 Bal. Per bank statement, end.
Add: Add: Deposits in Transit (DIT)

Less Service Chagre (60,000) Less:

Adjusted Balance 2,640,000 Adjusted Balance

 Exercise 1.1

Bank Reconciliation - Book to Bank Approach

Zodiac Company
Bank Reconciliation
For the month ended Apr
860,000
100,000 Book balance
(40,000) Add: Cash Receipts
920,000 Less: Cash Disbursements
Total
Add: Credit memo
Outstanding Cheks:
No. 1331
No. 1332
No. 1334
No. 1335
Total
Less: Debit Memos:
For bank service charge
205,000 For NSF check
100,000 Deposits in Transit
(40,000) Bank Balance
265,000

Adjusting Entries

Credit Memos

Debit Memos

Deposits in Transits

Outstanding checks

Exercise 1.5
 Alpha Company

Bal. Per bank statement, end. 4,000,000

Add: Deposits in Transit (DIT) 475,000

Outstanding checks (OC) (600,000)

Adjusted Balance
 Exercise 1.2

Bank to Book Approach

Zodiac Company
Bank Reconciliation
For the month ended April 30

800,000 Balance per bank

4,100,000 Add:
(3,800,000) 300,000
1,100,000
60,000
Less:
40,000
30,000
60,000
10,000 140,000 200,000
1,300,000

5,000
25,000 30,000
270,000 300,000
1,600,000

140,000 Outstanding checks

140,000

30,000 Debit Memos

30,000

60,000 Credit Memos

60,000

270,000 Deposits in Transits

270,000

1,240,000

Service charge
 Radiant Company
Bank Reconciliation
For the month ended April 30

ance per bank 3,500,000

NSF check 50,000
Debit memos 5,000

Outstanding checks 650,000