FAITH COLLEGES

INTACC1

Bank Reconciliation

Illustration I
ABC Co. receives its July 2019 bank statement and immediately prepares its July 2019 bank reconciliation. Relevant information prepares
follows
a. cash balance per books – P300,000
b. cash balance shown on the bank statement – P430,000
c. credit memo – P190,000
d. debit memo – P30,000
e. deposit in transit – P50,000
f. outstanding checks – P25,000 (including certified checks of P5,000)

Requirement: Prepare the bank reconciliation.

Illustration II
You received your August 2019 bank statement. The August 31, 2019 cash balance in your accounting books is P520,000 while the cash
balance shown on the bank statement is P410,000. You determined the following information
a. Check # 2345 for P45,000 issued to a supplier, is not yet presented to the bank for payment
b. A P205,000 check deposit, with deposit slip # 0989 is not yet credited to your account.
c. A customer deposited P60,000 to your bank account. You have not yet recorded this collection of accounts receivable in your
accounting books.
d. The bank paid P10,000 monthly mobile phone charges directly out of your account.

Requirement:
a. prepare the bank reconciliation
b. prepare the adjusting (reconciling) entries

Illustration III
ABC Co. is preparing its September 30, 2019 bank reconciliation. The following information was determined
a. Balance per bank statement, September 30, 2019 – P180,000
b. Deposit in transit, September 30, 2019 – P32,000
c. Return of customers check for insufficiency of funds (NSF check), September 30, 2019 – P60,000
d. Balance per books, September 30, 2019 – P143,000
e. Outstanding checks, September 30, 2019 – P27,000
f. A collection of P320,000 was recorded in the books as P230,000. The bank statement shows the correct amount of P320,000
g. The bank erroneously credited a P12,000 deposit of Eye Busy Co. to ABC Account.

Requirement: Prepare the bank reconciliation

Illustration IV
ABC CO. is preparing its October 31, 2019 bank reconciliation. The following information was determined.
a. the cash balance per books is P560,000 while the cash balance per bank statement is P640,000
b. credit memo – P40,000
c. debit memo – P30,000
d. deposit in transit – P150,000
e. outstanding checks – P50,000
f. the disbursement per books are overstated by P90,000
g. the bank debits are understated by P80,000

Requirement: Prepare the bank reconciliation

Illustration: PROOF OF CASH

The following information was taken from the records of ABC Co.

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 FAITH COLLEGES
INTACC1

November 30 December 31
Book Balance 5,600 ?
Book debits 31,900
Book credits 28,200
Bank balance 15,000 20,400
Bank debits ?
Bank credits 27,300
Notes collected by bank 2,250 3,000
Bank service charge 20 100
NSF check 880 1,400
Overstatement of check in payment of salaries 1,900 1,200
Deposit in transit 6,000 11,250
Outstanding checks 9,750 17,850
Deposit of 123 Corp. erroneously credited to ABC 2,400 1,800

Requirements
1. Unadjusted book balance as of December 31
2. Unadjusted bank disbursement in December
3. Adjusted cash balance as of November 30
4. Adjusted cash receipts in December
5. Adjusted cash disbursement in December
6. Adjusted cash balance as of December 31

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