FUNDAMENTALS OF ABM 2

Bank Reconciliation Statement

ASSIGNMENT No. 1

Instruction: Discuss each item whether it is a book reconciling or a bank reconciling item. After the
discussion, prepare a bank reconciliation statement. (20 points)

1. The bank statement for August 2020 shows an ending balance of Php3,490.

2. On August 31 the bank statement shows charges of Php35 for the service charge for maintaining
the checking account.

3. On August 28 the bank statement shows a returned item of Php100 plus a related bank fee of
Php10. The returned item is a customer's check that was returned because of insufficient funds.

4. The bank statement shows a charge of Php80 for check printing on August 20.

5. The bank statement shows that Php8 was added to the checking account on August 31 for
interest earned by the company during the month of August.

6. The bank statement shows that a note receivable of Php1,000 was collected by the bank on
August 29 and was deposited into the company's account. On the same day, the bank withdrew
Php40 from the company's account as a fee for collecting the note receivable.

7. The company's Cash account at the end of August shows a balance of Php967.

8. During the month of August, the company wrote checks totaling more than Php50,000. As of
August 31, Php3,021 of the checks written in August had not yet cleared the bank, and Php200
of checks written in June had not yet cleared the bank.

9. The Php1,450 of cash received by the company on August 31 was recorded on the company's
books as of August 31. However, the Php1,450 of cash receipts was deposited at the bank on
the morning of September 1.

10. On August 29 the company's Cash account shows cash sales of Php145. The bank statement
shows the amount deposited was Php154. The company reviewed the transactions and found
that Php154 was the correct amount.

ASSIGNMENT No. 2

1. On the bank stub held by a checking account bank client, write the beginning balance of P 100,000
and the deposits and checks drawn. Extract the ending balance. (10 points)
Check
Date Particulars Deposits Withdrawals Balance
No.
 2021
Sept. 5 Drawn check no. 56 for P 30,000 payable to SMI Corp. for payment of invoice 45.
Sept. 8 Issued check no. 57 to Marino Co. for advances for travel expense. The amount is
P16,000.
Sept. 10 Received payment from customer Ely Tan for P 34,000 for merchandise sold him. Issued
OR 312.
Sept. 15 The bank issued a debit memo P 800 for cost of blank check book.
Sept. 27 Payment to the BIR for withholding taxes was P 22,000. Check No. 58.
Sept. 29 Received from Marina Carlos P 4,000 OR 313.

2. The bank depositor in No. 1 received the following bank statement from the bank. Prepare a bank
reconciliation as of September 30, 2021. (10 points)
Balance Sept. 2 P 100,000
6 Check 56 (30,000)
10 Check 57 (16,000)
11 OR# 312 34,000
15 Debit Memo (800)
29 Bank Service Charge (1,000)
29 Interest Earned 600
29 Balance P 86,800