Kenneth Angelo Austria Mantal.

CPA, CMA

Bank Reconciliation and Accounting for Cash in Bank

Deposit in Transit - deposits recorded in books but not in bank kasi in transit palang,
on the way palang or inabutan ng cut off sa bank.

DIT example computation (1 month reconciliation)

Outstanding Checks - Checks na na issue na ng company's book but not yet released
or encashed by the bank / nabawas sa balance ng libro pero di pa bayad ng banko.

Book Reconciling Items

Kenneth Angelo Austria Mantal. CPA, CMA

Bank Cr - pumasok sa bank as additional deposit but di pa aware/ company book

recorded is not reflected

Credit Memo - increase sa account natin but not yet recorded on our books

Bank Dr - bawas pero di pa tayo aware on company records

Debit Memo - decrease sa account natin but not yet recorded on our books

Book Error - mali ng recording

Pro- Forma Journal Entries for Book Reconciling Items

Bank Cr
Kenneth Angelo Austria Mantal. CPA, CMA

Note: Journal entries lang 'to for Bank Recon / Adustments

Bank Dr

Method of Bank Recon

Unadjusted bank to book balance

Kenneth Angelo Austria Mantal. CPA, CMA

Inadjust yung balance ng bank para maging kaparehas ng book balance. (balance natin
in company)

Unadjusted book to bank balance.

Kenneth Angelo Austria Mantal. CPA, CMA

Inadjust yung balance ng books natin para maging kaparehas ng bank balance.

Adjusted Balance Method

in this method, parehas inaadjust both books para mag arrive sa same balance /
inaadjust to proper balance each.

Example:
Kenneth Angelo Austria Mantal. CPA, CMA

note: RT or returned check in this example means kinuha ulit ng banko yung ni-
deposit satin ni customr kasi wala palang laman yung banko ni customer/ deposited in
advance pero wala palang laman yung account ni customer

My Answer:

=======================================

Adjusted Balance Method:

Book balance 50,000

Add:
N/R Credit Memo 15,000 15,000

Less:
NSF (5,000)
SC (1,000) (6,000)

Adjusted 59,000

Bank balance 84,000

Kenneth Angelo Austria Mantal. CPA, CMA

Add:
DIT 40,000
Total 40,000

Less:
OC 725 37,000
OC 726 28,000 (65,000)

Adjusted 59,000

Note:

Reconciling items for adjusted balance method:

Book:

Add: Credit memo

Less: All Debit memo or bank charges/debit na di pa nag reflect sa
books natin

Bank:

Add: DIT
Less: OC

=======================================

Book to Bank Balance Method:

Book Balance 50,000

Add:
N/R CM 15,000
OC 725 37,000
726 28,00065,00080,000
Add
Kenneth Angelo Austria Mantal. CPA, CMA

Less:
DIT (40,000)
NSF (5,000)
SC (1,000) (46,000)

Adjusted Book Balance 84,000

=======================================

Bank to Book Balance Method:

Bank Balance 84,000

Add:

DIT 40,000
NSF 5,000
Service Charge 1,000 46,000

Less:

Notes Receivable 15,000

OC 725 37,000
OC 726 28,00065,000 (80,000)

Adjusted Bank to book Balance 50,000

=======================================

After considering reconciling items, record it as an adjusting entry in our BOOK.

Kenneth Angelo Austria Mantal. CPA, CMA

More Example
Kenneth Angelo Austria Mantal. CPA, CMA

Proceed to 1:18:00 recording in teams for explanation by Ms. Jamila

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