PROOF OF CASH

Proof of cash is only an expanded version of bank reconciliation.

It is a “two-date reconciliation” used to arrive the adjusted balance of cash with simultaneous
reconciliation of ‘cash receipts” and “cash disbursements” for a certain period of reporting.

Proof of cash is also known as four column reconciliation:

 Previous period
 Cash receipts
 Cash disbursements
 Current Period

RECONCILING ITEMS

The reconciling items for proof of cash are almost the same with a normal bank reconciliation which will
also be used to adjust the following:

 Cash Receipts
 Cash Disbursements
 Bank Credits
 Bank Debits
DIFFERENT RECONCILIATION METHODS

The same with a normal bank reconciliation, proof of cash may also be prepared through the following
methods:

 Adjusted Balance

 Books to bank
 Bank to book
SAMPLE PROBLEM 1