Bank Reconciliation

Problem 1

The cash records of Alessa Company show the following for the month of January:

Cash Receipts Cash Disbursement

Jan 5 60,000 Jan 6 Ck. # 721 5,000

13 20,000 7 Ck. # 722 10,000
25 30,000 10 Ck. # 723 18,000
31 40,000 14 Ck. # 724 2,000
150,000 28 CK. # 725 37,000
31 Ck. # 726 28,000
100,000

The general ledger of the company shows the cash in bank account for January as follows:

Cash in Bank – First Bank

Jan 31 CR 150,000 Jan 31 CD 100,000

The Balance of cash in bank on the depositor’s book is 50,000.

The following is the bank statement for January received from the First Bank:

In account with: No. 775

Alessa Company First Bank

Tandang Sora City Manila Philippines

Date Ck. # Withdrawals Deposit Balance

Jan 6 60,000 60,000

8 721 5,000 55,000
11 722 10,000 45,000
12 723 18,000 27,000
14 20,000 47,000
17 724 2,000 45,000
26 30,000 75,000
26 15,000 CM 90,000
30 5,000 RT 85,000
30 1,000 SC 84,000

Code: CM – Credit Memo SC – Service Charge

DM – Debit Memo RT – Returned Check
The following data gathered in connection with the CM and DM appearing on the bank statement:

a. The CM of 15,000 on Jan. 26 represents proceeds of note collected by the bank in favor
of the company.
b. The RT of 5,000 represents check of customer deposited previously returned by the
bank because of “no sufficient fund” or NSF.

Problem 2

Carefree Company prepared the following bank reconciliation on March 31:

Book balance 1,405,000

Add: March 31 deposit 750,000
Collection of note 2,500,000
Interest on note 150,000 3,400,000
Total 4,805,000
Less: Careless Company's deposit to our account 1,100,000
Bank service charge 45,000 1,145,000
Adjusted book balance 3,660,000

Bank balance 5,630,000

Add: Error on check No. 175 45,000
Total 5,675,000
Less: Preauthorized payments for water bills 205,000
NSF check 220,000
Outstanding check 1,650,000 2,075,000
Adjusted bank balance 3,600,000

Check No. 175 was made for the proper amount of P249,000 in payment of account. However it
was entered in the cash payments journal as P294,000. The entity authorized the bank to
automatically pay its water bills as submitted directly to the bank.

What is the adjusted cash in bank on March 31?

Problem 3
In preparing the bank reconciliation on December 31, 2018, Case Company provided the following
data:

Balance per bank statement 3,800,000

Deposit in transit 520,000
Amount erroneously credited by bank to Case's account 40,000
Bank service charge for December 5,000
Outstanding checks 675,000
What is the adjusted cash in bank on December 31, 2018?

Problem 4
In an audit of Mindanao Company on December 31, 2018, the following data are gathered:

Balance per book 1,000,000

Bank charges 3,000
Outstanding checks 235,000
Deposit in transit 300,000
Customer note collected by bank 375,000
Interest on customer note 15,000
Customer check returned NSF 62,000
Depositor's note charged to account 250,000

What is the adjusted cash in bank on December 31, 2018?

Problem 5
Core Company provided the following data for the purpose of reconciling the cash balance per
book with the balance per bank statement on December 31, 2018:

Balance per bank statement 2,000,000

Outstanding checks (including certified check of P100,000) 500,000
Deposit in transit 200,000
December NSF checks (of which P50,000 had
been redeposited and cleared by December 27) 150,000
Erroneous credit to Core's account, representing
proceeds of loan granted to another company 300,000
Proceeds of note collected by bank for Core,
net of service charge of P20,000 750,000

What is the cash in bank to be reported on December 31, 2018?