On June 30, 2021, the bank statement of ABC Co. had an ending balance of P3,735,000.

The following data were assembled in the course of reconciling the bank balance:

 The bank erroneously credited ABC Co. for P21,000 in June 22

 During the month, the bank returned NSF checks amounting to P23,000, of which
P8,000 had been redeposited and cleared in June 25
 Collection for June 30 amounting P103,000 was deposited the following month
 Checks outstanding on June 30 amounted to P302,000
 Note collected by the bank for ABC Co. was P80,000, and the corresponding bank
charges was P5,000

4. What is the unadjusted cash in bank per ledger on June 30, 2021?
a. 3,515,000
b. 3,557,000
c. 3,455,000
d. 3,497,000

Unadjusted BANK balance 3,735,000

Add: Deposit in Transit 103,000
Add: NSF Checks (23,000 – 8,000) 15,000
Add: Bank charges on note collected by the bank 5,000
Less: Outstanding Checks (302,000)
Less: Bank erroneous credit to ABC CO.’s account (21,000)
Less: Note collected by the bank (80,000)
----------------
Unadjusted BOOK balance (4) 3,455,000

5. What is the adjusted balance per book on December 31?

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

BANK BOOK
UNADJUSTED balances 3,735,000 3,455,000
Add (Deduct) Reconciling Items
Deposit in Transit 103,000
Outstanding Checks (302,000)
Bank erroneous credit to ABC CO.’s account (21,000)
NSF Checks (23,000 – 8,000) (15,000)
Note collected by the bank 80,000
Bank charges on note collected by the bank (5,000)
------------------ ------------------
ADJUSTED balances 3,515,000 (5) 3,515,000