ALA, CLAUD ALLYN G.

BSA-1
INTACC 189
ACTIVITY 4 (A04) PROOF OF CASH

Problem 1 – (Answers and solutions)

1. Compute the June deposit in transit.

Deposit in Transit – May 31 ₱ 300,000

Add: Cash receipts per book per record ₱ 1,800,000
Total deposits to be acknowledge by the bank ₱ 2,100,000
Less: Deposit acknowledge by the bank – June ₱ 1,600,000
Deposit in Transit - June ₱ 500,000

2. Compute for June outstanding checks.

Outstanding Check – May 31 ₱ 100,000

Add: Cash disbursement per book per record ₱ 2,500,000
Total checks to be acknowledge by the bank ₱ 2,600,000
Less: Checks cleared by the bank ₱ 2,200,000
Outstanding Checks - June ₱ 400,000

3. Compute for June adjusted cash in bank.

Balance per book ₱ 2,100,000

Add: Credit Memos ₱ 550,000
Total ₱ 2,650,000
Less: Service Charge ₱ 50,000
NSF Check ₱ 100,000 ₱ 150,000
Adjusted book balance ₱ 2,500,000

Balance per bank ₱ 2,400,000

Add: Deposit in transit ₱ 500,000
Total ₱ 2,900,000
Less: Outstanding Checks ₱ 400,000
Adjusted bank balance ₱ 2,500,000
Problem 2 – (Answers and solutions)

1. Adjusted balance method.

CENTER Company
PROOF OF CASH
For the month of April

March 31, 2020 Receipts Disbursements April 30,

2020
Balance per book ₱ 200,000 ₱ 800,000 ₱ 720,000 ₱ 280,000
Note collected:
March ₱ 60,000 (60,000)
April ₱ 100,000 ₱ 100,000
Bank service charge:
March (₱ 8,000) (₱ 8,000)
April ₱ 2,000 (₱ 2,000)
NSF check:
March (₱ 20,000) (₱ 20,000)
April ₱ 30,000 (₱ 30,000)
Adjusted book balance ₱ 232,000 ₱ 840,000 724,000 348,000

Balance per bank ₱ 330,000 ₱ 700,000 ₱ 530,000 ₱ 500,000

Deposit in transit
March 31 ₱ 80,000 (₱ 80,000)
April 30 ₱ 220,000 ₱ 220,000
Outstanding checks:
March 31 (₱ 178,000) (₱ 178,000)
April 30 ₱ 372,000 (₱ 372,000)
Adjusted bank balance ₱ 232,000 ₱ 840,000 ₱ 724,000 ₱ 348,000

2. Book to bank balance method.

 CENTER Company
PROOF OF CASH
For the month of April

March 31, 2020 Receipts Disbursements April 30, 2020

Balance per book ₱ 200,000 ₱ 800,000 ₱ 720,000 ₱ 280,000
Note collected:
March ₱ 60,000 (₱ 60,000)
April ₱ 100,000 ₱ 100,000
Bank service charge:
March (₱ 8,000) (₱ 8,000)
April ₱ 2,000 (₱ 2,000)
NSF check:
March (₱ 20,000) (₱ 20,000)
April ₱ 30,000 (₱ 30,000)
Deposit in transit
March 31 (₱ 80,000) ₱ 80,000
April 30 (₱ 220,000) (₱ 220,000)
Outstanding check
March 31 ₱ 178,000 ₱ 178,000
April 30 (₱ 372,000) ₱ 372,000
Balance per bank ₱ 330,000 ₱ 700,000 ₱ 530,000 ₱ 500,000

3. Bank to book balance method.

 CENTER Company
PROOF OF CASH
For the month of April

March 31, 2020 Receipts Disbursements April 30, 2020

Balance per bank ₱ 330,000 ₱ 700,000 ₱ 530,000 ₱ 500,000
Deposit in transit:
March 31 ₱ 80,000 (₱ 80,000)
April 30 ₱ 220,000 ₱ 220,000
Outstanding checks:
March 31 (₱ 178,000) (₱ 178,000)
April 30 ₱ 372,000 (₱ 372,000)
Note collected:
March (₱ 60,000) ₱ 60,000
April (₱ 100,000) (₱ 100,000)
Service charge:
March ₱ 8,000 ₱ 8,000
April (₱ 2,000) ₱ 2,000
NSF check:
March ₱ 20,000 ₱ 20,000
April (₱ 30,000) ₱ 30,000
Balance per book ₱ 200,000 ₱ 800,000 ₱ 720,000 ₱ 280,000