BANK RECONCILIATION

1.) In preparing the August 31, 2013 bank reconciliation, Apex Company provided the following information:

Balance per bank statement 1,805,000

Deposit in transit 325,000
Return of customer’s check for insufficient fund 60,000
Outstanding checks 275,000
Bank service charge for August 10,000

On August 31, 2013, what is the adjusted cash in bank?

a. 1,855,000
b. 1,795,000
c. 1,785,000
d. 1,755,000

2.) In preparing the bank reconciliation on December 31, 2013, Case Company provided the following data:

Balance per bank statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by bank to Case’s account 40,000
Bank service charge for December 5,000
Outstanding checks 675,000

What is the adjusted cash in bank on December 31, 2013?

a. 3,685,000
b. 3,645,000
c. 3,600,000
d. 3,605,000

3.) In an audit of Mindanao Company on December 31, 2013, the following data aree gathere:

Balance per book 1,000,000

Bank charges 3,000
Outstanding checks 235,000
Deposit in transit 300,000
Customer note collected by bank 375,000
Interest on customer note 15,000
Customer check returned NSF 62,000
Depositor’s note charged to account 250,000

What is the adjusted cash in bank on December 31, 2013?

a. 1,575,000
b. 1,065,000
c. 1,075,000
d. 1,325,000
4.) Core Company provided the following data for the purpose of reconciling the cash balance per book with the balance per bank
statement on December 31, 2013:

Balance per bank statement 2,000,000

Outstanding checks (including certified check of P100,000) 500,000
Deposit in transit 200,000
December NSF checks (of which P50,000 had
been redeposited and cleared by December 27) 150,000
Erroneous credit to Core’s account, representing
proceeds of loan granted to another company 300,000
Proceeds of note collected by Bank for Core,
net of service charge of P20,000 750,000

What is the cash in bank to be reported on December 31, 2013?

a. 1,500,000
b. 1,400,000
c. 1,800,000
d. 1,450,000

5.) Aries Company keeps all its cash in a checking account. An examination of the entity’s accounting records and bank statement
for the month ended June 30, 2013 revealed the following information:
 The cash balance per book on June 30 is P8,500,000.
 A deposit of P1,000,000 that was placed in the bank’s night depository on June 30 does not appear on the bank
statement.
 The bank statement shows on June 30, the bank collected note for Aries and credited the proceeds of P950,000 to the
entity’s account.
 Checks outstanding on June 30 amount to P300,000.
 Aries discovered that a check written in June for P200,000 in payment of an account payable, had been recorded in the
entity’s record as P20,000.
 Included with the June bank statement was NSF check for P250,000 that Aries had received from a customer on June 26.
 The bank statement shows P20,000 service charge for June.

What is the cash in bank to be reported in the statement of financial position on June 30, 2013?

a. 9,000,000
b. 8,300,000
c. 9,360,000
d. 9,180,000

6.) On March 31, 2013, Able Company received its bank statement. However, the closing balance of the account was unreadable.
Attempts to contact the bank after hours did not secure the desired information. The following data are available in preparing
a bank reconciliation:

February 28 book balance 1,460,000

Note collected by bank 100,000
Interest earned on note 10,000
NSF check of customer 130,000
Bank service charge on NSF 2,000
Other bank service charges 3,000
 Outstanding checks 202,000
Deposit of February 28 placed in night depository 85,000
Check issued by Axle Company charged to Able’s account 20,000

What is the cash balance per bank statement?

a. 1,435,000
b. 1,532,000
c. 1,338,000
d. 1,557,000

7.) Stellar Company’s bank statement for the month of December included the following information:

Ending balance, December 31 2,800,000

Bank service charge for December 12,000
Interest paid by bank to Stellar Company for December 10,000

In comparing the bank statement to its own cash records, the entity found the following:

Deposits made but not yet recorded by the bank 350,000

Checks written and mailed but not yet recorded by the bank 650,000

In addition, the entity discovered that it had drawn and erroneously recorded a check for P46,000 that should have been
recorded for P64,000.

What is the cash balance per ledger on December 31?

a. 2,500,000
b. 2,520,000
c. 2,540,000
d. 2,800,000

8.) On June 30, 2013, the bank statement of Bougainvilla Company had an ending balance of P3,735,000. The following data were
assembled in the course of reconciling the bank balance:
 The bank erroneously credit Bougainvilla Company P21,000 on June 22.
 During the month, the bank charged back NSF checks amounting to P23,000 of which P8,000 had been redeposited by
June 25.
 Collection for June 30 totaling P103,000 was deposited the following month.
 Checks outstanding on June 30 amounted to P302,000.
 Note collected by the bank for Bougainvilla Company was P80,000 and the corresponding bank charge was P5,000.

What is the unadjusted cash in bank per ledger on June 30, 2013?

a. 3,515,000
b. 3,557,000
c. 3,455,000
d. 3,497,000

9.) Letty Company’s bank statement for the month of April included the following information:
 Bank service charge for April 15,000
Check deposited by Letty during April was not collectible
and has been marked “NSF” by the bank and returned 40,000

In comparing the bank statement to its own records, the entity found the following:

Deposits made but not yet recorded by bank 130,000

Checks written and mailed but not yet recorded by bank 100,000

All deposits in transit and outstanding checks have been properly recorded in the entity’s books.

A customer’s check for P35,000 payable to Letty Company had not yet been deposited and had not been recorded by the
entity. The cash in bank account balance per ledger is P920,000

What is the adjusted cash in bank on April 30?

a. 900,000
b. 865,000
c. 930,000
d. 965,000

10.) Carefree Company prepared the following bank reconciliation on March 31:

Book balance 1.405,000

Add: March 31 deposit 750,000
Collection of note 2,500,000
Interest on note 150,000 3,400,000
Total 4,805,000
Loss: Careless Company’ s deposit to our account 1,100,000
Bank service charge 45,000 1,145,000
Adjusted book balance 3,600,000

Bank balance 5,630,000

Add: Error on check No. 175 45,000
Total 5,675,000
Less: Preauthorized payments for water bills 250,000
NSF check 220,000
Outstanding check 1,650,000 2,075,000
Adjusted bank balance 3,600,000

Check No. 175 was made for the proper amount of P249,000 in payment of account. However it was entered in the cash
payments journal as P294,000. The entity authorized the bank to automatically pay its water bills as submitted directly to the
bank. What is the adjusted cash in bank on March 31?

a. 3,660,000
b. 3,600,000
c. 3,630,000
d. 2,880,000
11.) Divine Company prepared the following bank reconciliation on December 31, 2013:

Balance per bank statement 2,800,000

Add: Deposit in transit 195,000
Checkbook printing charge 5,000
Error made by Divine recording
check No. 45 (issued in December) 35,000
NSF check 110,000 345,000
3,145,000
Less: Outstanding check 100,000
Note collected by bank (includes P15,000 interest) 215,000 315,000

Balance per book 2,830,000

The entity had P200,000 cash on hand on December 31, 2013. What amount should be reported as cash in the statement of
financial position on December 31, 2013?

a. 2,930,000
b. 3,095,000
c. 2,895,000
d. 3,130,000

12.) Margar Company keeps all cash in a checking account. An examination of the entity’s accounting records and bank statement
for the month ended December 31, 2013 revealed a bank statement balance of P8,469,000 and a book balance of P8,524,00.

A deposit of P950,000 placed in the bank’s night depository on December 29 does not appear on the bank statement. Checks
outstanding on December 31 amount to P270,000.

The bank statement shows that on December 25, the bank collected a note for Margar Company and credited the proceeds of
P935,000 to the entity’s account. The proceeds included P35,000 interest, all of which Margar Company earned during the
current period. Margar Company has not yet recorded the said collection.

Margar Company discovered that check number 1000759 written in December for P183,000 in payment of an account had
been recorded in the entity’s records as P138,000.

Included with the December 31 bank statement was an NSF check for P250,000 that Margar Company had received from Ana
Company on December 20. Margar Company has not yet recorded the returned check. The bank statement shows a P15,000
service charge for December.

What is the journal entry to adjust the cash in bank on December 31, 2013?

a. Net debit to cash in bank of P625,000

b. Net credit to cash in bank of P625,000
c. Debit to cash in bank of P935,000
d. Credit to cash in bank of P310,000

13.) While checking the cash account of ABC Company on December 31, 2013, the following information is discovered:
 Balance per book 6,776,000
Balance per bank statement (outstanding checks of P987,000) 6,532,000
Deposit in bank closed by BSP 1,600,000
Currency and coins counted 950,000
Petty cash fund (of which P100,000 is in the form of paid vouchers) 50,000
Bank charges not yet taken up in the book 6,000
Bond sinking fund 1,000,000
Receivables from employees 70,000
Error in recording a check in the book. The correct
amount as paid by the bank is P89,000 instead of P98,000
as recorded in the book, or a difference of 9,000

What is the adjusted cash in bank on December 31,2013

a. 6,535,000
b. 6,779,000
c. 7,769,000
d. 8,379,000

14.) Ron company provided the following data for the month of January of the current year:

Balance per book, January 31 3,130,000

Balance per bank statement, January 31 3,500,000
Collections on January 31 but Undeposited 550,000
NSF check received from a customer returned by the bank on
February 5 with the January bank statement 50,000
Checks outstanding on January 31 650,000
Bank debit memo for safety deposit box rental not recorded by depositor 5,000
A creditor’s check for P30,000 was incorrectly recorded in the depositor’s
Book as 300,000
A customer’s check for P200,000 was recorded by the depositor as 20,000
The depositor neglected to make an entry in its books for a check
drawn in payment of an account payable 125,000

What is the adjusted cash in bank on January 31?

a. 3,130,000
b. 3,500,000
c. 3,400,000
d. 2,950,000

15.)In reconciling the cash balance on December 31,2013 with that shown in the bank statement, the following tacts are gathered
from the records of Sam Company:

Balance per bank statement 4,000,000

Balance per book 2,700,000
Outstanding checks 600,000
Deposit in transit 475,000
Service charge 10,000
Proceeds of bank loan, December 1, discounted for 6 months at 12%,
not recorded on Sam Company’s books 940,000
Customer’s check charged back by bank
For absence of counter signature 50,000
Deposit of P100, 000 incorrectly recorded by bank as 10,000
 Check of Sim Company charged by bank
against Sam account 150,000
Customer ‘s note collected by bank in favor of Sam Company.
Face 400,000
Interest 40,000
Total 440,000
Collection fee 5,000
Erroneous debit memo of December 28,
To charge Sam account with
Settlement of bank loan 200,000
Deposit of Sim Company credited to Sam account 300,000

What is the adjusted cash in bank on December 31, 2013?

a. 4,315,000
b. 3,925,000
c. 3,075,000
d. 4,015,000

16.)Esteem Company’s month-end bank statement showed a balance of P3,600,000. Outstanding checks amounted toP1,200,000,
a deposit of P400,000 was in transit at month-end, and a check for P50,000 was erroneously charged by the bank against the
account. What is the correct balance in the bank account at month-end?

a. 2,750,000
b. 2,850,000
c. 2,050,000
d. 4,350,000

17.)The accounts of Susan Company showed the following facts on August 31, 2013.

Balance of cash in bank account 1,300,000

Balance of bank statement 1,200,000
Outstanding checks, August 31:
Number 555 10,000
761 55,000
762 40,000
763 25,000
764 65,000
765 70,000
Receipts of August 31, deposited September 1 275,000
Service charge for August 5,000
NSF check received from a customer 85,000

The cashier-bookkeeper had misappropriated P30,000 and an additional P10,000 by charging sales discounts and crediting
accounts receivable The stub for check number 765 and the invoice relating there to show that it was for P50,000. It was
recorded incorrectly in the cash disbursements journal as P70, 000. This check was drawn in payment of an account payable.
Payment has been stopped on check number 555 which was drawn in payment of an account payable. The payee cannot be
located. What is the adjusted cash in bank in august 31, 2013?

a. 1,240,000
b. 1,230,000
c. 1,210,000
d. 1,200,000

18.)The cash account of Gallant Company showed a balance of P4, 500,000. The bank statement did not include a deposit of
P230,000 made on the last day of the month. The bank statement showed a collection by the bank of P94,000 and a
customer’s check for P32,000 returned because it was NSF. A customer’s check for P45,000 was recorded on the books as
P54,000, and a check written for P79,000 was recorded as P97,000.What is the correct balance in the cash account?

a. 4,765,000
b. 4,571,000
c. 4,819,000
d. 4,801,000

19.)Mcbride Company provided the following data pertaining to the transactions and bank account for May of the current year.

Cash balance per accounting recorded 1,719,000

Cash balance per bank statement 3,195,000
Bank service charge 10,000
Debit memo for the cost of printed checks delivered
by the bank;
the charge has not been recorded in
the accounting record 12,000
Outstanding checks 685,000
Deposit of May 30 not recorded by bank until June 1 500,000
Proceeds of a bank loan on May 30, not recorded in accounting record,
net of interest of P30,000 570,000
Proceeds from a customer’s promissory note,
principal amount P800,000
collected by the bank not taken
up in the accounting record with interest 810,000
Check No. 1086 issued to a supplier entered in the
accounting record as P210,000 but deducted in the
bank statement at an erroneous amount of 120,000
Stolen check lacking an authorized signature deducted
from Mcbride’s account by the bank error 80,000
Customer’s check returned by the bank marked NSF
indicating that the customer’s balance was not
adequate to cover the check ;no entry has been
made in the accounting record to record
the returned check 77,000

What is the adjusted in bank?

a. 3,000,000
b. 2,910,000
c. 3,080,000
d. 2,990,000
20.)The last account in the ledger of Kate Company shows a balance of P1,652,000 at December 31 . The bank statement,
however, shows a balance of P2,000,000 at the same date. The only reconciling items consist of bank service charge of P2,000,
a large number of outstanding checks totaling P590,000 and a deposit in transit. What is the deposit in transit in the
December 31 bank reconciliation?

a. 150,000
b. 440,000
c. 154,000
d. 592,000

21.)Grass Company provided the following information:

Balance per bank statement July 31 1,240,000

Balance per ledger, July 31 750,000
Deposit of July 30 not recorded by bank 280,000
Debit memo – service charges 10,000
Credit memo – collection of note by bank 300,000
Outstanding checks ?

An analysis of the canceled checks returned with the bank statement

reveals the following:
* Check for purchase of supplies was drawn for P60,000 but
was recorded as P90,000
* The manager wrote a check for traveling expenses of P100,000
while out of town. The check was not recorded.

What is the amount of outstanding checks on July 31?

a. 970,000
b. 270,000
c. 550,000
d. 610,000

22.)The following information was included in the bank reconciliation for

Bayside Company for October and November 2013:

Checks and charges recorded by bank in November,

including a November service charge of P4,000
and NSF check of P20,000 550,000
Service charge made by bank in October and
recorded by depositor in November 2,000
Total credits to cash in all journals during November 620,000
Customer’s NSF check returned in October and
redeposited in November (no entry made by
depositor in either October or November) 40,000
Outstanding checks on October 31,2013 that
cleared in November 230,000

What is the amount of outstanding checks on November 30,2013?

a. 282,000
b. 300,000
c. 322,000
d. 302,000

23.)Jam Company providing the bank reconciliation on May31:

Balance per bank statement 2,100,000

Deposit outstanding 300,000
Checks outstanding ( __30,000)

Correct cash balance 2,370,000

Balance per book 2,372,000

Bank service charge ( __ 2,000)
Correct cash balance 2,370,000

June data are as follows:

Bank Book
Checks recorded 2,300,000 2,360,000
Deposit recorded 1,620,000 1,800,000
Collection by bank (P400,000 note
plus interest) 420,000
NSF check returned with June 30statement 10,000
Balances 1,830,000 1,810,000

1. What is the amount of checks outstanding on June 30?

a. 30,000
b. 90,000
c. 60,000
d. 0

2. What is the amount of deposit s in transit on June 30?

a. 480,000
b. 120,000
c. 180,000
d. 680,000

3. What is the adjusted cash in bank on June 30?

a. 1,810,000
b. 2,220,000
c. 2,240,000
d. 2,780,000

24.)Lazer Company had the following bank reconciliation on June 30,

2013:

Balance per bank statement, June 30 3,000,000

Deposit in transit __400,000
Total 3,400,000
Outstanding checks ( __900,000)

Balance per book, June 30 2,500,000

The bank statement for the month of July showed the following:
Deposits (including P200,000 note collected for Lazer) 9,000,000
 Disbursements (including P140,000 NSF check and
P10,000 service charge) 7,000,000

All reconciling items on June 30 cleared through the bank in July. The outstanding checks totaled P600,000 and the deposit in
transit amounted to P1,000,000 July 31.

1. What is the cash balance per book on July 31?

a. 5,400,000
b. 5,350,000
c. 5,550,000
d. 4,500,000

2. What is the amount of cash receipts per book in July?

a. 9,400,000
b. 9,600,000
c. 8,600,000
d. 9,800,000

3. What is the amount of cash disbursements per book July?

a. 6,550,000
b. 6,700,000
c. 7,300,000
d. 6,850,000

25.)Chris Company presented the following bank reconciliation for the

month of November of the current year:

Balance per bank statement, November 30 3,600,000

Add: Deposit in transit _ _800,000
4,400,000
Less: Outstanding checks 1,200,000
Bank credit recorded in error _200,000 _1,400,000
Balance per book, November 30 3,000,000

Data per bank statement for the month of December follow:

December deposits (including note
collected of P1,000,000 for Chris) 5,500,000
December disbursements (including NSF, P350,000
and service charge, P50,000) 4,400,000

All items that were outstanding on November 30 cleared through the bank in December, including the bank credit. In addition,
checks amounting to P500,000 were outstanding and deposits of P700,000 were in transit on December 31.
1. What is the cash balance per ledger on December 31?
a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
2. What is the amount of cash receipts per book in December?
a. 5,400,000
b. 4,400,000
c. 5,500,000
d. 6,400,000

3. What is the amount of cash disbursements per book in December?

a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000

26.)Lira Company prepared the following bank reconciliation dated June 30 of the current year.

Balance per bank 9,800,000

Deposit in transit 400,000
Outstanding checks ( 1,400,000)
Balance per book 8,800,000

There were total deposits of P6,500,000 and charges of disbursements of P9,000,000 for July per bank statement. All
reconciliation items on June 30 cleared the bank on July 31. Checks outstanding amounted to P1,000,000 on July 31.What is
the amount of cash disbursements per book in July?
a. 8,600,000
b. 7,600,000
c. 9,400,000
d. 8,400,000

27.)Oro Company had the following bank reconciliation on March 31 of the current year:

Balance per bank statement, March 31

Add: Deposits in transit
Total
Less: Outstanding checks
Balance per book, March 31

Data per bank statement for the month of April follow:

Deposits
Disbursements

All reconciliation items on March 31 cleared through the bank in April. Outstanding checks on April 30 totaled P750,000 and
deposits in transit amounted to P1,500,000. What is the amount of cash receipts per book in April?
a. 5,000,000
b. 6,500,000
c. 7,500,000
d. 5,500,000