Click to edit Master title style

Proof of Cash

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Proof of edit
CashMaster title style
• A proof of cash is an expanded reconciliation in that it
includes proof of receipts and disbursements.
• Termed “expanded” because it is a two-date bank
reconciliation.
• This approach may be useful in discovering possible
discrepancies in handling cash particularly when cash
receipts have been recorded but not have been deposited.
• Follow these basic steps in answering proof of cash
questions.
• Step 1: Analyze the beginning and ending column of the
format as if it is bank reconciliation.
• Step 2: Analyze the middle columns based on the nature of
the item.
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Proof of edit
CashMaster title style
• BOOK
✓ Receipts – total debits during the current month
✓ Disbursements – total credits during the current month

• BANK
✓ Receipts – total credits during the current month
✓ Disbursements – total debits during the current month

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Proof of edit
CashMaster title style
Book Prior Month Receipts Disbursements Current Month
Unadjusted Balance xx xx xx xx
Credit Memo:
✓ Prior Month xx (xx)
✓ Current Month xx xx
Debit Memo:
✓ Prior Month (xx) (xx)
✓ Current Month xx (xx)
Bank Prior Month Receipts Disbursements Current Month
Unadjusted Balance xx xx xx xx
Deposit in Transit:
✓ Prior Month xx (xx)
✓ Current Month xx xx
Outstanding Check:
✓ Prior Month (xx) (xx)
✓ Current Month xx (xx)
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Proof of edit
CashMaster title style
Book Prior Month Receipts Disbursements Current Month
Errors:
Under Receipt
✓ Prior Month xx (xx)
✓ Current Month xx xx
Over Receipt
✓ Prior Month (xx) (xx)
✓ Current Month (xx) (xx)

Cash xx
Accounts Receivable xx

Accounts Receivable xx
Cash xx

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Proof of edit
CashMaster title style
Book Prior Month Receipts Disbursements Current Month
Errors:
Under Disbursement
✓ Prior Month (xx) (xx)
✓ Current Month xx (xx)
Over Disbursement
✓ Prior Month xx (xx)
✓ Current Month (xx) xx

Accounts Payable xx
Cash xx

Cash xx
Accounts Payable xx

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