Intermediate Accounting 1

PROOF OF CASH
Chapter 3

TWO-DATE BANK RECONCILIATION

 The procedures followed for a one-date reconciliation are the same for a two-date
reconciliation.

 A two-date reconciliation becomes complicated only when certain facts or data are omitted.
NOTE:

 All items debited to the cash in bank account which do not represent deposits should be
deducted from the book debits total to arrive at the cash receipts deposited.

 In the absence of any statement to the contrary, book debits are assumed to be cash receipts
deposited.

 All items credited to the depositor’s account which do not represent deposits should be
deducted from the bank credits to determine the deposits acknowledged by bank.

 Bank credits are assumed to be deposits acknowledged by bank in the absence of any statement
to the contrary.

NOTE:

 All items not representing checks credited to the cash in bank account should be deducted from
the book credits total to arrive at the checks drawn by the depositor.

 All book credits in the absence of any statement to the contrary are assumed to be checks
issued.

 All items debited to the account of the depositor not representing checks paid should be
deducted from the bank debits total to arrive at the checks paid by bank.

 However, all bank debits in the absence of any statement to the contrary are assumed to be
checks paid by bank.

PROOF OF CASH

 It is an expanded reconciliation in that it includes proof of receipts and disbursements.

HOW TO PROOF OF CASH THE BANK BALANCE?

HOW TO PROOF OF CASH THE BOOK BALANCE?